Washington Home Buyers Hopeful For Lower Mortgage Rates

Mortgage rates play a key role in the overall cost of a mortgage. Unfortunately, mortgage rates have been very high as of late, making buying a home and taking out a mortgage very expensive compared to years past.

Considering this, buyers will have to budget accordingly to make sure their home purchase is financially doable. The article will outline how homebuyers in Washington State should navigate the real estate and mortgage market before buying a home.

During the 3rd week of January 2026, the rate for a 30-year fixed-rate mortgage was 6.06%, and the rate for a 15-year fixed rate mortgage is currently at 5.38%.

High Washington Mortgage Rates

Last week, the government-sponsored mortgage corporation Freddie Mac announced that the average rate for a 30-year fixed mortgage sits at 6.72%, as mentioned. Rates have been on a steady decrease – despite the odd fluctuations here and there – since last year.

In January 2021 – which is when rates stared to increase — mortgage rates in Washington State and across the nation were as low as 2.65% for a 30-year loan. Since then, rates have been on a steady incline, though they have been dipping over the past few months and are lower today than what they were the same time last year.

During the same week in January 2025, the rate for a 30-year mortgage was 7.04%.  Today, the rate is 6.06%, marking nearly a full 1.0% decrease YOY.

Granted, not all borrowers will qualify for the lowest mortgage rates. Washington home buyers with higher credit scores and other positive indicators tend to qualify for better interest rates. When rates are high, buyers must work harder to qualify for a home loan.

Even the difference of one percent can make a massive difference in the overall amount of interest that would need to be paid over the life of a mortgage. Tens or even hundreds of thousands of dollars stand to be saved by Washington homeowners who refinance their mortgages and lock in at a rate that’s significantly lower than what they are stuck with right now.

Pro Tip: Use an online mortgage calculator to estimate the costs of your home loan.

MBA Reports Increases in Purchase and Refinance Applications

According to the latest Mortgage Bankers Association (MBA) weekly survey, mortgage and refinance applications increased from the year before.

As of the third week of January 2026, purchase applications increased 13% from the same time last year. The current 30-year fixed rate has been sitting at the low-6% range. This is affecting both purchase and refinance mortgage contracts.

The Refinance Index showed a 128% increase compared to the same week last year.

According to a November 2nd report by the MBA:

“The Market Composite Index, a measure of mortgage loan application volume, increased 28.5 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 65 percent compared with the previous week. The Refinance Index increased 40 percent from the previous week and was 128 percent higher than the same week one year ago. The seasonally adjusted Purchase Index increased 16 percent from one week earlier. The unadjusted Purchase Index increased 51 percent compared with the previous week and was 13 percent higher than the same week one year ago.”

Earlier this year, the MBA predicted that the rate for a 30-year fixed mortgage would dip down to around 6.0% or lower by year-end.

Different Products, Different Rates

It’s also worth mentioning that different loan products tend to have different rates. Washington State home buyers seeking the best possible mortgage rate should consider all of their financing options.

For example, adjustable mortgage loans (ARMs) usually start off with lower interest rates than their fixed counterparts — at least during the first few years. But the ARMs are also less predictable over the long term. So there’s a trade-off to be made. At the time of this writing, the mortgage rates for various loan products are as follows:

As you can see, the rate you get will depend on the type of mortgage product you apply for. Further, other factors will play a role, such as your credit score, financial profile, and the lender you work with.

Have Questions About Rates and Mortgages in Washington?

Are you thinking of buying a home and are ready to take out a mortgage in Washington? If so, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, WA and serve all of Washington, Idaho, Colorado, Oregon, and California since 1992. We offer a number of mortgage programs to suit your needs. Please contact us if you have mortgage-related questions or to get pre-approved for a mortgage.