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. This article will go over where rates are today and why now might be a good time to get into the Washington State real estate market.
Not only are FHA loans easier to qualify for, they’re also affordable thanks to continued low interest rates. FHA mortgage rates in Washington State have been hovering at historically low levels for a long time now, and are currently sitting at 2.625%, as of January 2021.
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 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 for FHA loans is now sitting at 2.625%, continuing the downward trend of rates and keeping them under the 3% mark.
According to Freddie Mac, borrowers who locked in these rates paid an average of 0.7 points at closing (for 30- and 15-year fixed-rate mortgages). To learn more about this particular survey, you can visit FreddieMac.com.
The average mortgage rate for an FHA loan in Washington State has been hovering below 4% since May of 2019. In fact, it has come down quite a bit since then.
The 30-year rate average was 2.65% at the beginning of January this year, and the average FHA rate during the same week was 2.97%.
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:
“This week’s mortgage rates were the second lowest in three years, supporting homebuyer demand and leading to higher refinancing activity. Borrowers who take advantage of these low rates can improve their cash flow by lowering their monthly mortgage payments, giving them more money to spend or save.”
So that’s where Washington State FHA loan rates are right now.
Home prices in Washington State have soared in recent years, and they are expected to continue rising into 2021. 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.
FHA loan limits have gone up for 2021, as well as conforming limits. That’s because they are based on median home values, and those values have risen steadily over the last year.
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.
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.
Disclaimer: This article 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.
If you’re thinking of getting a mortgage in Washington State, we can help. Sammamish Mortgage has been proudly serving borrowers across Washington State, Oregon, Idaho, and Colorado since 1992, and we welcome the opportunity to help you as well. We have a variety of mortgage programs to offer. Get in touch with us today to get a quote rate!
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