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Mortgage rates play a key role in the overall cost of a mortgage. The good news is that today, mortgage rates are still relatively low compared to years past.
Considering this, buyers have a chance to buy a home with a more affordable mortgage, making now a potentially great time to get in the market in Washington State. The article will outline why more and more Washington homebuyers are jumping at the chance to snag a low mortgage rate.
Home buyers in Washington State and across the nation are capitalizing on relatively low mortgage rates. During the third week of March 2022, the rate for a 30-year fixed-rate mortgage was 4.16%, and the rate for a 15-year fixed rate mortgage is currently at 3.39%.
Last week, the government-sponsored mortgage corporation Freddie Mac announced that the average rate for a 30-year fixed mortgage sits at 4.16%. Rates have been on a steady increase – despite the odd fluctuations here and there – since early 2021.
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.
Now, rates are just over the 4.0% mark. 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. But the fact that we are seeing decent rates for 2022 is good news for anyone who is in the market to buy or refinance a house.
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.
Home buyers have noticed these trends, and are now jumping at the chance to lock in the best Washington mortgage rates of the year. So it’s no surprise to see a recent jump in loan applications, as reported by a key industry group.
According to the Mortgage Bankers Association (MBA) weekly survey, mortgage refinances decreased over the of February 23, 2022, according to the Refinance Index. The index showed an 18% decrease from the previous week, and was 41% lower compared to the same week in 2021.
Despite week after week of continued increases in loan applications thanks to unprecedented low mortgage rates, loan applications for new home purchases have decreased over the third week of February 2022 compared to the week before.
According to a February 23 report by the MBA:
“The seasonally adjusted Purchase Index decreased 10 percent from one week earlier. The unadjusted Purchase Index decreased 6 percent compared with the previous week and was 6 percent lower than the same week one year ago. “
The MBA predicted that the rate for a 30-year fixed mortgage would reach 4.0% by the end of 2022. But as we can see, we’ve already reached that point and surpassed it.
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.
Are you thinking of buying a home in Washington and are ready to take advantage of today’s low interest rates? If so, Sammamish Mortgage can help. We are a local, family-owned company based in Bellevue, Washington and serve the entire state, as well as the broader Pacific Northwest region, including Idaho, Colorado, and Oregon since 1992. We offer a number of mortgage programs to suit your needs. Please contact us if you have mortgage-related questions.
Whether you’re buying a home or ready to refinance, our professionals can help.
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No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.