Summary: If you’re thinking of buying a mortgage using an FHA loan, now may be a great time to buy and lock in at a great rate, as rates are still extremely low.
FHA mortgage rates in Washington State have been hovering at historically low levels for a long time now, and are currently sitting at 3.25%.
This is good news for Washington home buyers who are thinking of using an FHA loan to buy a house. Locking in a low rate now could shield you from potential interest hikes down the road.
The Latest Mortgage Rate Trends
The latest mortgage rate results point to a prime opportunity to buy or refinance. Mortgage rates are lower today than they have been in a while, prompting plenty of refinancing among homeowners and presenting a great opportunity for buyers to get into the market.
Today’s 30-year fixed-rate mortgage is now sitting at 3.68%, continuing the downward trend of rates and keeping them under the 4% mark since May.
Here are the averages for conventional and FHA loan rates across Washington State and the U.S., for the week ending August 16, 2019:
- The 30-year fixed-rate mortgage loan had an average rate of 3.25%, a slight decline over last week.
- The 15-year fixed-rate mortgage averaged 2.25% this week, unchanged from last week.
- The 5/1 ARM loan rate actually rose a couple of basis points, landing at 3.56% this week.
According to Freddie Mac, borrowers who locked in these rates paid an average of 0.6 points at closing. To learn more about this particular survey, you can visit www.freddiemac.com/pmms.
FHA Loan Rates Below 4% Since May
The average mortgage rate for an FHA loan in Washington State has been hovering below 4% since May of this year. In fact, it has come down quite a bit since then.
The 30-year rate average was 4.46% in January this year, and the average FHA rate during the same month was 5.05%.
Granted, these are average mortgage rates we’re talking about. The rate you receive on a home loan may differ from the averages reported above, due to a number of factors such as loan features and credit qualifications.
But the overall trend here is undeniable. Apparently, there hasn’t been very much upward pressure on Washington mortgage rates in recent months.
The economic team at Freddie Mac said as much in their latest survey report:
“The decline in mortgage rates over the last month is causing a spike in refinancing activity – as homeowners currently have $2 trillion in conventional mortgage loans that are in the money – which will help support consumer balance sheets and increase household cash flow. On top of that, purchase demand is up seven percent from a year ago.”
So that’s where Washington State FHA loan rates are right now.
A Popular Program for Washington Home Buyers
Home prices in Washington State have soared in recent years, and they are expected to continue rising into 2017. But the FHA loan program is still a viable option for many home buyers in the state, despite rising house values.
In many counties across the state, FHA loan limits are lower than median home prices. This means that home buyers who use the program may need to look harder to find a home within those limits.
(On a side note, there’s a chance FHA loan limits will go up in 2020, for some counties in Washington State. The same goes for conforming and VA limits. That’s because they are based on median home values, and those values have risen steadily over the last year. We’ll know more in November or December, when next year’s loan limits will be announced.)
FHA loans are particularly popular among first-time home buyers in Washington State, though they’re certainly not limited to this group. In many cases, first-time buyers lack the funds for a large down payment. So the 3.5% down payment that’s allowed under the FHA loan program can be very appealing to these borrowers.
Get a Quote Today
Are you planning to use an FHA loan to buy a home in Washington State? If so, we can provide you with an instant rate quote to help you move forward. We can also answer any questions you have about this mortgage program, and how it might benefit you as a borrower.
Sammamish Mortgage has been proudly serving borrowers across Washington State for more than 20 years, and we welcome the opportunity to help you as well. Get in touch with us today to get a quote rate!
Disclaimer: This story contains FHA loan rate trends for Washington State and across the nation. The averages reported above are based on the weekly survey conducted by Freddie Mac. Mortgage rates vary based on several factors, including geography, loan features, and borrower credit history. Please contact us if you would like to receive a quote. Last Updated: