Washington Home Buyers Jump at Best Mortgage Rates

Published:
June 7, 2017
Last updated:
November 9, 2021
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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 incredibly low and have recently hit their lowest level ever.

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 the best mortgage rates we’ve ever seen. During the first week of November 2021, the rate for a 30-year fixed-rate mortgage was 3.09%, and the rate for a 15-year fixed rate mortgage is currently at 2.35%.

November Brings Low 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 3.09%. Rates have been on a steady decline – despite the odd fluctuations here and there – since late 2018, though they’ve inched up since the start of 2021.

In November 2018 – which is when rates stared to fall, mortgage rates in Washington State and across the nation peaked at 4.94% for a 30-year loan. Following the U.S. presidential election in November 2016, rates rose sharply and didn’t slow down much until November 2018.

But mortgage rates have come down since then, and are now just over the 3% mark. 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 great rates for 2021 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.

View Washington State Mortgage Rates

MBA Reports Decreases in Refinance Applications

According to the Mortgage Bankers Association (MBA) weekly survey, refinance applications decreased to their lowest level since January 2020.

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 second week of November 2021 compared to the week before.

According to a March 25 report by the MBA:

“The unadjusted Purchase Index decreased 3 percent compared with the previous week and was 9 percent lower than the same week one year ago.”

Before that, we were seeing ongoing increases in loan applications thanks to low rates.

The MBA predicts that the rate for a 30-year fixed mortgage will reach 4.0% by the end of 2022. This is still relatively low, which makes a case 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. At the time of this writing, the mortgage rates for various loan products are as follows:

  • 30-year fixed-rate mortgage rate: 3.09%
  • 15-year fixed-rate mortgage rate: 2.35%
  • 5/1 adjustable-rate mortgage rate: 2.54%

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.

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Have Questions About Rates and Mortgages?

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.

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