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Home price increases in WA State have slowed over the past year, while interest rates have dipped. Mortgage refinancing has increased this past year thanks to a dip in mortgage interest rates. And experts agree that this trend will continue throughout 2026.
A slow pace of home price appreciation is also expected throughout 2026, with experts anticipating a rate of increase of roughly 1% – 4% over the next 12 months.
At the same time, mortgage rates have decreased YOY and are forecasted to continue their downward trend this year. This brings good news for homeowners who are in the market to buy or refinance a home in Washington State in 2026.
According to Freddie Mac, mortgage rates are sitting at 6.06% as of January 2026. Home prices, meanwhile, are inching up, but very slowly.
Mortgage refinancing activity has skyrocketed over the past year, and experts agree that this trend will continue throughout 2026.
As of the third week of January 2026, the Mortgage Bankers Association (MBA) Refinance Index increased 128% compared to the same week last year.
If you locked in at a much higher rate when you originally took out your mortgage, refinancing now may be worth considering. It may also be a great idea if you can qualify for a lower rate due to improvements in your credit score and income.
The average rate for a 30-year fixed home loan was around 6.06% as of January 2026. But as high as rates are now, they’ve actually come down over the past year.
Generally speaking, when rates go down, a large number of Washington homeowners are able to refinance their mortgages to lower their monthly payments.
Depending on your current interest rate and your home equity situation, 2026 might be a good time to refinance your home in Washington State. Please contact our staff if you’d like to know how it might work out for you, based on your current mortgage situation.
Related: Forecast for Washington FHA rates
Home prices in Washington State, meanwhile, are expected to rise steadily in nearly every city in 2026. This means equity levels for homeowners are also on the rise.
According to real estate research firm Zillow, the average home price in Washington State is $585,576. That’s 0.5% lower than the same time last year. The real estate market in Washington State is cool yet relatively healthy right now.
That means homeowners may see an increase in value in their homes, which means more equity. This could allow more Washington homeowners to refinance their mortgage loans in 2026, considering the potential dip in rates. Rising home values boost equity levels for homeowners, which can make it easier to qualify for a refinance.
Every refinancing situation is different because there are several variables involved. If your primary goal is to save money over the long term, you’ll want to start by calculating your break-even point. This is the point at which the money you save each month (after refinancing) begins to surpass the amount you paid in closing costs.
We can help you determine if it makes sense to refinance your home in Washington by evaluating your current mortgage situation and your financing goals. Refinancing doesn’t make sense in every situation. But with home prices rising and mortgage rates on a downward trend, you might be one of the growing number of homeowners who could benefit from a Washington home refinance.
Pro Tip: Use an online mortgage calculator to estimate your loan costs.
Are you ready to apply for a mortgage to purchase a Washington home? If so, Sammamish Mortgage is here to help. We are a local, family-owned company based in Bellevue, WA and have been serving borrowers in Washington, Oregon, Idaho, Colorado, and California since 1992. We have plenty of mortgage programs for you to choose from with flexible qualification criteria. Please contact us if you have mortgage-related questions, to get an instant rate quote, or to get pre-approved.
Whether you’re buying a home or ready to refinance, our professionals can help.
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