Do you enjoy following Washington State mortgage rate trends as much as we do? If so, you’ll find this chart analysis interesting. To kick off the new year, we’re taking a look back at Washington State mortgage rate history and trends over the last 12 months. We’ll follow that up with the latest forecast from analysts and economists.
Chart: Washington State Mortgage Rate History for 2016
The following chart shows mortgage rate history and trends for Washington State and the rest of the nation. This chart accompanied the latest update of Freddie Mac’s weekly market survey, which was published on December 29, 2016. If a picture is worth a thousand words, this chart has a lot to say.
The first thing you’ll notice is the steep upward slope over on the far-right side of the chart. That slope represents the last few weeks of 2016. Washington State mortgage rates began to rise following the U.S. presidential election in November, and they continued their climb through the end of 2016. As a result, home buyers who purchase at the start of 2017 will likely encounter higher rates.
For 2016, Washington State mortgage rate history could be summed up as: “Mostly stable with an end-of-year surge.” You can see these trends clearly enough in the chart above.
Here’s a summary of what happened during 2016:
- Drop: The average rates for the three mortgage categories shown above actually dropped at the start of 2016, despite earlier forecasts that predicted a steady rise.
- Hover: The average rate for a 30-year fixed home loan hovered below 4% for most of the year, and was relatively stable.
- Rise: During the first week of November 2016, mortgage rates in Washington State and the rest of the country rose quickly, creating a strong sense of urgency for home buyers.
Forecast for 2017: A Gradual Rise Ahead?
That’s the 12-month history of Washington State mortgage rate trends, in a nutshell. The big question now is, what’s going to happen in 2017? What are experts predicting for the next 12 months? For this, we will defer to the economists at the Mortgage Bankers Association (MBA).
According to the MBA’s latest forecast, rates will rise gradually during 2017. Here is their latest quarterly outlook for the average rate on a 30-year fixed loan:
- Q1 2017: 4.3%
- Q2 2017: 4.4%
- Q3 2017: 4.6%
- Q4 2017: 4.7%
The economists at Freddie Mac have offered a slightly different outlook. In December, the company’s housing research team predicted that 30-year mortgage rates would hover around 4.2% throughout 2017. This is a more stable forecast than the one offered by the MBA.
The one thing we can say with certainty is that we will start 2017 with higher mortgage rates, on average, than we saw at the beginning of 2016.
Disclaimer: This history of Washington State mortgage rate trends includes forecasts made by third parties not associated with our company. We have included them as an educational service to our readers. The trends and forecasts above are based on averages from a nationwide survey. Actual rates vary based on a variety of factors, including the type of home loan and the borrower’s qualifications.