Seattle Mortgage Rates Continue Increasing

Published:
March 15, 2012
Last updated:
May 3, 2022
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Seattle mortgage rates have been on a steady increase for the past year and a half and are quite a bit higher today than they were last year. Where are rates today and how will they impact homebuying?

If you’re considering a home purchase in Seattle, you should consider where rates are today and where they’re expected to go in the future.

Federal Reserve Increased Rates

The US economy is recovering, and the real estate market in Seattle and across the nation still remains relatively strong.

The Federal Reserve increased rates more than once already over the past few months and is likely to raise it again throughout its 2022 meetings. The goal is reducing inflation, which is why more rate hikes are expected. It’s anticipated that the federal funds rate will 3% by 2023. In turn, mortgage rates continue to increase, making borrowing costs more expensive for homebuyers.

The latest activity from the Federal Reserve in terms of hiking rates plays a role in consumer spending and confidence, as borrowing and leveraging funds is less affordable. And that includes mortgages.

With rates increasing, buying a home in Seattle is more expensive, especially with soaring prices in the city, which have increased over the past 12 months.

The national housing market across the nation has been a hot one lately, with home prices in Seattle having gone up 16.4% over the last 12 months, according to real estate research firm Zillow. Prices are still expected to increase throughout 2022. That said, housing is still out of reach for many Americans, especially with higher interest rates on mortgages that we have been seeing over the recent past.

Today’s Seattle Mortgage Rates

Seattle Housing Market Hot and Still Expensive

Seattle’s home prices are among the highest in the country, which has made it difficult for many buyers to get into this particular market. The average price for a home in Seattle is still more expensive than most other markets in the nation.

But there are plenty of other options for buyers when it comes to buying a home. If Seattle is too expensive, there are plenty of other centers close by that offer much more affordable home prices, including Federal Way, Tacoma, and Lakewood.

In fact, these particular cities are experiencing a hot real estate market as more and more buyers flock to centers like these because of their lower prices while still being within close proximity to Seattle.

Get an Instant Mortgage Rate Quote Today

Have Questions About Mortgages?

Sammamish Mortgage is a local, family-owned company based in Bellevue, Washington. We serve the entire state, as well as the broader Pacific Northwest region that includes Idaho, Colorado, and Oregon. We offer a wide variety of mortgage programs and products with flexible qualification criteria and have been helping borrowers since 1992, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Please contact us if you have mortgage-related questions.

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