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Mortgage rates in Seattle – and across the nation – continue on a downward trend into early 2021 and are expected to continue to remain low throughout the remainder of the year. With prices in Seattle starting to increase, now may be a great time for home buyers to get into the market.
Back in November 2018, mortgage rates started a downward descent that is still ongoing. Seattle mortgage rates are now at 3.02% for a 30-year fixed-rate mortgage, which is near its lowest point for the year. In fact, rates recently hit their lowest point ever multiple times, making homebuying a more affordable proposition for buyers.
So it appears that Seattle home buyers may have a perfect opportunity to get into the housing market, thanks to both lower interest rates. And after months of dips in home prices in Seattle, they’re finally on the their way up. Buyers may want to consider getting into the market today before prices take off and while interest rates are still very low.
As of early 2021, Freddie Mac anticipates the annual average interest rate for 2021 to be 3.2%. The recent decrease in mortgage rates over the last few months stems in part from the weaker global economy, continued global trade disputes, and the recent coronavirus outbreak.
Further, the Federal Reserve’s latest meetings have resulted in rate slash after rate slash in an effort to ward off an economic downturn. Interest rates impact the cost of borrowing for mortgages and are currently hovering between 0% to 0.25%.
While Fed policy doesn’t influence Seattle mortgage rates directly, it can have an indirect affect.
As of this writing, the interest rate for a 30-year fixed-rate mortgage is currently 3.03% and is not expected to waiver much from that point. Bear in mind this is an average of rates assigned by lenders across the industry. Individual rates vary widely based on the type of loan being used, the borrower’s credit score, and other factors.
Mortgage rates have been on a relatively steady decline over the past year and a half. Most notable is the recent plummet in rates, with no signs of increasing much into the near future.
“Since reaching a low point in January, mortgage rates have risen by more than 30 basis points, and the impact on purchase demand has been noticeable. While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March, prior to the pandemic. However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season.”
The average rate for a 15-year fixed home loan currently sits at 2.34%, and the 5/1 adjustable mortgage (ARM) rate currently sits at 2.73%.
Seattle home prices have also uncharacteristically declined over recent months. Over the course of 2020, prices in Seattle increased 8.7%. The median home value in the city is $813,154 as of March 2021.
The message to home buyers is clear: Now may present an ideal time to get into the market as home prices in Seattle are starting their ascent and mortgage rates are extremely low.
Will you need mortgage financing to buy a home in Seattle? We can help. Sammamish Mortgage has been serving buyers across the Pacific Northwest since 1992. We offer a wide variety of mortgage programs with flexible qualification criteria in Washington, Idaho, Colorado, and Oregon. Please contact us today with any financing-related questions you have.
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