As the demand for homes continues to rise in 2021, construction spending has increased, and mortgage rates remain low.
Summary: Mortgage rates have been on a steady decline since the start of 2020, and been on that trend even before that. In this article, we’ll get into more detail about where Seattle mortgage rates are today and where they are expected to be throughout the remainder of 2020.
Interest rates are a key component of home loans and determine how much a home loan will cost a borrower over the length of the term. Rates tend to differ slightly from one mortgage program to the next. Considering the popularity of the 30-year fixed-rate mortgage loan, we’ll discuss rates for this particular program.
This type of home loan is by far the most popular mortgage product among Seattle home buyers and refinancing homeowners. So the rate trends for this particular loan are closely watched by many people.
And the latest news is good news. Seattle 30-year fixed mortgage rates have been an a downward trend since the start of 2020, and even earlier. This is beneficial for borrowers, since it means paying a lot less in interest over the term of their mortgages.
Seattle 30-year Mortgage Rate Trends
While mortgage rates have been decreasing since 2020, they actually started this trend long before that. More specifically, the 30-year fixed-rate mortgage rate reversed its upward trend in late 2018.
The peak of rates over the past 5 years was during the week of November 8, 2018, when rates for 30-year fixed-rate mortgages was at 4.94%. Since that time, rates have sharply declined. And despite the odd blip on the radar, the trend has been downward ever since. As of today, rates stand at 3.31%, near a record low, according to Freddie Mac.
In fact, rates for these types of home loans recorded an all-time low just recently over the first week of March, when they dipped to 3.29%.
Incentive Among Home Buyers
Home prices in the Seattle metro area have risen steadily — and significantly — over the last few years, despite a decline from mid-2018 to mid-2019. Today, the average home price in Seattle is $767,900. While it remains to be seen what will happen with home price trends as a result of the coronavirus pandemic, buyers certainly have a lot of incentive to get into the real estate market given the incredibly low rates available to them today.
Surge in Refinancing in Seattle
In addition to the incentive of homebuyers to get into the Seattle housing market, there is also plenty of encouragement for homeowners to refinance their mortgages as a result of such low rates. In fact, lenders are seeing a surge in refinancing activity thanks to the low interest rate environment that we are currently seeing ourselves in.
In many cases, Seattle mortgage lenders cannot keep up with the demand of refinancing. Applications are soaring, and for good reason. Even a percent or two off the original interest rate can mean tens of thousands of dollars saved in interest over the life of a loan.
If you are a homeowner in Seattle, you may want to consider taking advantage of today’s low interest rates and refinance to save a bundle over your mortgage term.
Need a Home Loan in Seattle?
If a mortgage is what you need to buy a home in Seattle, Sammamish Mortgage can help. We have been helping home buyers across Washington, Colorado, Idaho, and Oregon since 1992. We are a local, family-owned company offering competitive rates on a variety of mortgage programs, including the ever-popular 30-year fixed mortgage. Please contact us today for a rate quote, or with any financing-related questions you might have. We look forward to hearing from you!