As we approach the end of November, there has been an increase in new home construction and builder confidence, while rates remain low and unemployment claims start to rise.
Summary: FHA and conventional loan rates in Washington and across the country had been increasing up until the fall of 2018. But since then, they’ve dipped. The question is, how long will rates stay this low?
After rising up until the fall of 2018, FHA mortgage rates in Washington State have since dipped below 3.0%. In fact, the average FHA loan rate for a 30-year fixed mortgage is currently lower than it was at the end of 2018, and there’s no expectation of rates increasing any time soon, especially as we continue to deal with the health crisis.
Washington FHA Loan Rates in Summer 2020
According to the weekly market survey conducted by Freddie Mac, the average rate for a 30-year fixed home loan remains extremely low as of mid-August, 2020, and currently sits at 2.99%.
Rates have been on a steady decline since 2018, and they’re showing no sign of trending upwards any time soon. In fact, mortgage rates have hit all-time lows eight times already in 2020, and we’re just barely past the half-way mark of the year.
The question is, what will Washington State FHA loan rates do over the coming months? And what will happen in 2021?
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: Rates Expected to Remain Low Through to End of Year
FHA loan rates in Washington State are currently hovering just below 3.0% for a 30-year fixed mortgage. They’ve been low over the last few weeks, and economists and analysts expect that conventional and FHA mortgage rates will continue to remain low until the end of the year.
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 remain around 3.1% by the first three quarters of 2021.
- Freddie Mac — In June, 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 3.3% in 2020, before sliding modestly to 3.1% in 2021.
So the general consensus is that Washington State FHA loan rates will remain low 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!
Ready to Apply For an FHA Mortgage in WA State?
Do you have questions about home loans? Are you ready to apply for a mortgage to buy a home? If so, Sammamish Mortgage can help. We are a local mortgage company from Bellevue, Washington serving the entire state, as well as Oregon, Idaho, and Colorado. We offer many mortgage programs to buyers all over the Pacific Northwest. Contact us today with any questions you have about mortgages.