VA loan mortgage rates in Washington State are still hovering below 4%, on average, despite previous predictions that they would rise steadily in 2017. Home buyers who are in the market for a VA loan in Washington should seriously consider taking advantage of today’s low interest rates.
Yesterday, Freddie Mac reported the latest results of its long-running survey of the primary mortgage market. According to their “PMMS” report, the average rate for a 30-year fixed mortgage loan dropped to 3.90% during the week of June 22, 2017.
That was the second-lowest reading of the year, thus far. Conventional and VA loan rates in Washington State haven’t been this low since a few weeks ago, when the average dipped even lower.
At the start of 2017, the average rate for a 30-year fixed mortgage was hovering around 4.20% according to Freddie Mac. So VA loan rates in Washington and across the country have dropped a bit since the start of the year, creating favorable conditions for borrowers.
Will VA Loan Rates Rise Later in 2017?
Looking forward, however, some analysts anticipate that interest rates will gradually climb through the rest of 2017 and into 2008.
For example, the Mortgage Bankers Association recently updated its long-range forecast for conventional and VA loan rates. By their estimation, the average rate for a 30-year loan could rise to 4.4% by the fourth quarter of 2017. That would be an increase of 50 basis points (or 0.50%) from where they are right now.
Of course, that’s just a forecast – not a certainty. But if their predictions prove to be accurate, it means that VA loan borrowers in Washington State could encounter higher borrowing costs down the road. It’s certainly something to consider, if you’re in the market for a VA loan.
Why Mortgage Rates Vary
Washington mortgage rates can vary from one borrower to the next, based on a variety of factors. The average rates mentioned above are useful in the sense that they help us track market trends over time. But the rate you receive on a VA loan in Washington State may be below or above average, due to a variety of factors.
For instance, borrowers with excellent credit tend to secure lower interest rates than those with marginal credit scores. Additionally, some borrowers choose to pay “discount points” at closing in exchange for a lower interest rate.
There are also rate differences between adjustable and fixed mortgage loans. So there are a number of variables that will determine the actual rate you receive on a VA loan.
Keep an Eye out for Rising Home Prices
VA loan rates in Washington are very appealing right now. But there’s no telling how long they’ll hover in the current range. Recent forecasts suggest that rates might inch upward over the coming months.
But we could see an even greater increase in home prices across Washington. In fact, Washington was recently singled out as having the fastest rising home values of any state in the nation.
According to Zillow, the median home price in the state rose by more than 10% over the last year (as reported in June 2017). While house values appear to be slowing down a bit, they will most likely continue rising to some degree through 2017 and into 2008.
These are important developments for those who are considering buying a home with a VA loan. Based on current market trends, and the long-range forecasts being offered by housing experts, a case could be made for buying a home sooner rather than later.