Seattle Mortgage Rate Trends and Forecast, 2022

August 5, 2016
Last updated:
May 6, 2022
In This Article

Where are mortgage interest rates expected to go throughout 2022? Understanding the mortgage rate trends in Seattle can help you make a more informed decision about when to buy a home and take out a home loan.

During the first week of May, 2022, Freddie Mac reported that the average rate for a 30-year fixed mortgage landed at 5.1%. Seattle-area home buyers and mortgage shoppers should know that rates are on the rise, and the current rate is quite al bit higher than what it was the same time last year. That said, this rate is still much lower than where rates were a few years ago. 

But where will rates go throughout the remainder of this year? 

We’ll get to the long-range forecasts in a moment. First, let’s take a look at where we are right now.

As mentioned above, Seattle mortgage rates are currently hovering around 5.1%. These are average rates for 30-year loans, based on the weekly survey conducted by Freddie Mac. They solicit input from lenders across the country, including the Seattle metro area.

Freddie Mac then compiles the average rates presented by those lenders, and publishes the results. They’ve been doing this since the 1970s.

The following are the rates for different mortgage types in the first week of May, 2022 , according to Freddie Mac:

  • 30-year fixed-rate mortgages: 5.1%
  • 15-year fixed-rate mortgages: 4.4%
  • 5/1 ARMs: 3.78%

By contrast, compare the above rates to those from the same week last year:

  • 30-year fixed-rate mortgages: 2.98%
  • 15-year fixed-rate mortgages: 2.31%
  • 5/1 ARMs: 2.64%

One thing will jump out at you right away: current mortgage rates are higher than they were in 2021.  

That’s where we are in the first week of May 2022. Now let’s adjust the lens and look out over the horizon, with a forecast for Seattle mortgage rates.

Today’s Seattle Mortgage

Forecast for 2022

The Mortgage Bankers Association (MBA) originally expected mortgage interest rates to hit 4% by the end of 2022. Freddie Mac offered a mortgage rate forecast that was similar to the MBA’s outlook. But as we can see, we’ve already shot well passed the 4% mark so far this year. It remains to ben seen where rates will be by the end of the year.

Related: Seattle housing market forecast

The Federal Reserve’s Rate Hikes

The Federal Reserve has something to do with all of this. While the Fed does not control mortgage rates directly, they do control the shorter-term federal funds rate (which banks use when transferring balances). So the Fed’s monetary policies can have an indirect influence on mortgage rates.

The Fed has held the federal funds rate near 0% for the last few years, as part of a broader economic stimulus plan. Indirectly, this has helped keep mortgage rates near historic lows.

But over its latest scheduled meetings, Fed officials decided to increase the interest rate. And it’s expected that the central bank will increase rates again at its next meeting, and perhaps the one following.

General Consensus: Rising Rates?

So what’s the general consensus here? Based on these and other sources, the forecast for Seattle mortgage rates could best be described as increasing between now and the end of 2022

Again, this is just a forecast. It’s the equivalent of an educated guess. A highly educated guess — but a guess nonetheless.

The point is that we probably should expect mortgage rates to increase a bit more in the next few months. This is something to consider if you’re planning to buy a home or refinance your existing loan.

Rate Quotes for Seattle-Area Mortgage Shoppers

Are you a Seattle home buyer preparing to make a purchase, or a homeowner planning to refinance? We can provide you with an instant rate quote to help you move forward. 

We can also answer any questions you have about the different types of home loans, and which one might be best suited to your situation. We offer a variety of loan options, including FHA, VA, and conventional.

Sammamish Mortgage has been proudly serving borrowers in the Seattle metro area for three decades, and we welcome the chance to help you as well!

Get an Instant Mortgage Rate Quote Today

Disclaimer: This article includes mortgage rate forecasts and predictions from third-party sources not associated with our company. We have simply compiled this information as an educational service for our readers. Mortgage rates tend to vary based on geography, loan features, and credit qualifications. Please contact us if you would like to receive a quote.

Need a Mortgage?

Sammamish Mortgage is a local mortgage company serving the broader Pacific Northwest region, including Washington state, Idaho, Colorado, and Oregon. We are proud to offer a wide variety of mortgage programs and products with flexible qualification criteria, including our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans, and have been doing so since 1992. Please contact us if you have any questions or are ready to apply for a home loan.

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