After rising sharply at the end of last year, FHA mortgage rates in Washington State have since leveled off a bit. In fact, the average rate for a 30-year fixed mortgage is currently a bit lower than it was at the start of 2017. But industry groups predict that conventional and FHA loan rates could inch upward over the coming months.
Washington FHA Loan Rates Level in Spring 2017
According to the weekly market survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan dropped a bit this week (May 18, 2017) to land at 4.02%.
This average includes conventional and FHA loan rates in Washington State and across the U.S. It’s based on input from more than 100 lenders, so it’s a pretty good snapshot of mortgage rate trends.
Here is a chart that accompanied the latest survey results.
Again, this chart shows average rates for FHA and conventional home loans in Washington and across the nation. It includes averages for three different types of mortgage loans, including the ever-popular 30-year fixed (shown in blue).
You can see where rates surged at the end of 2016. They bounced around a bit at the start of 2017, and have been relatively stable over the last few weeks.
The question is, what will Washington State FHA loan rates do over the coming months? Are they expected to rise between now and the end of 2017, and if so by how much?
Unfortunately, no one can answer these questions with complete accuracy. But there are some industry forecasts available that show us what economists and analysts expect. So let’s talk about those next.
Forecast: A Slow But Steady Rise Ahead?
FHA loan rates in Washington State are currently hovering just above 4%, for a 30-year fixed mortgage. They’ve been pretty steady over the last few weeks. But economists and analysts predict that conventional and FHA mortgage rates could rise between now and the end of 2017.
Here are two notable forecasts:
- MBA — The Mortgage Bankers Association (MBA) publishes a “Finance Forecast” every month, which looks out over the next 18 months or so. In their latest report, the industry group’s economists predicted that the 30-year mortgage rate average would rise to 4.6% by the fourth quarter of 2017.
- Freddie Mac — In April, the mortgage-buying giant Freddie Mac published its latest Economic and Housing Market Forecast. The company’s forecast provides a quarterly outlook for key economic and housing indicators, including interest rates. They predicted that 30-year mortgage rates would average 4.5% by the fourth quarter of 2017. They expect it to average 4.8% during 2018.
So the general consensus is that Washington State FHA loan rates could rise gradually between now and the end of this year. Of course, these outlooks are the equivalent of a highly educated guess. And a lot can change over the coming weeks and months that could drive mortgage rates up or not. But at least we know what the experts are thinking!