Home buyers in Washington State and across the nation are capitalizing on the best mortgage rates we’ve seen since November of last year. During the week of June 1, 2017, the average rate for the widely used 30-year fixed mortgage loan fell to 3.94%.
June Brings Best Washington Mortgage Rates of the Year
Last week, the government-sponsored mortgage corporation Freddie Mac announced that the average rate for a 30-year fixed mortgage dropped to 3.94%. To find the last time it was that low, you would have to go all the way back to November of 2016.
In the fall of last year, mortgage rates in Washington State and across the nation were hovering around 3.5% for a 30-year loan. Following the U.S. presidential election in November, rates rose sharply and didn’t stop until the second week of January 2017.
But mortgage rates have come down since then, sinking below the 4.0% threshold during the last week of May 2017. Last week, Freddie Mac announced that the average rate for a 30-year fixed home loan dropped to its lowest level of 2017.
Granted, not all borrowers will qualify for the lowest and best 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 the best rates of 2017 is good news for anyone who is in the market to buy or refinance a house.
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.
MBA Reports Big Jump in Loan Applications
According to the Mortgage Bankers Association (MBA) weekly survey, loan applications among home buyers rose by 10% during the first week of June 2017, compared to the previous week. The purchase application index rose to its highest level since May of 2010.
According to a June 7 report by the MBA:
“The Market Composite Index, a measure of mortgage loan application volume, increased 7.1 percent on a seasonally adjusted basis from one week earlier … The Refinance Index increased 3 percent from the previous week. The seasonally adjusted Purchase Index increased 10 percent from one week earlier to its highest level since May 2010.”
The ongoing (to date) drop in mortgage rates is largely responsible for this uptick in home loan applications. Anytime there is a significant drop in borrowing costs, lending activity tends to surge.
The long-range forecast is a different story. In May 2017, the MBA published its latest mortgage finance forecast extending through 2018. They expect the average rate for a 30-year home loan to rise gradually, perhaps reaching 4.6% by the fourth of quarter.
Of course, this is just a forecast, and it could prove wrong. But a case could be made for buying a home sooner rather than later, to lock in the best mortgage rates available to Washington borrowers.
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, the 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.
Get a rate quote: Due to our competitive pricing model, Sammamish Mortgage offers some of the best mortgage rates in Washington State. Please contact us today if you would like to receive a quote, or if you have any mortgage-related questions.