Are you thinking about buying or refinancing a home in Washington State? Now might be a great time to make your move. Mortgage rates in Washington and across the U.S. dropped again this week, falling to their lowest point of 2017.
This is based on the latest Primary Mortgage Market Survey (PMMS) conducted by Freddie Mac. This long-running survey goes out to more than 100 lenders every week, and is published each Thursday. The latest results, shown below, were posted on April 20, 2017.
Washington Mortgage Rate Trends: April 20, 2017
Here are the latest averages across several loan types, as of April 20, 2017:
- 30-year: The average rate for a 30-year fixed-rate mortgage in Washington State and nationally averaged 3.97% this week. That’s with an average of half a point paid at closing. This marks a decline of 11 basis points (0.11%) from last week, when the average 30-year loan rate was 4.08%. A year ago at this time, it averaged 3.59%.
- 15-year: The average rate on a 15-year fixed mortgage in Washington and across the U.S. dropped to 3.23% for the week of April 20, 2017. That was also an 11-point decline over the previous week. During the same week last year, 15-year mortgages held an average rate of 2.85%.
- 5-year ARM: The 5-year Treasury-indexed hybrid adjustable-rate mortgage (one of the most popular ARM loans in use today) averaged 3.10% this week. That was also a decline from last week.
The average rate for a 30-year fixed mortgage in Washington State hasn’t been this low since November of 2016. Of course, rates can vary from one borrower to the next, due to the type of loan being used, credit scores, and other factors. But there general trend here is good news for Washington mortgage shoppers.
According to a Freddie Mac news release that announced the latest survey: “The 30-year mortgage rate fell 11 basis points this week to 3.97 percent, dropping below the psychologically-important 4 percent level for the first time since November. Weak economic data and growing international tensions are driving investors out of riskier sectors and into Treasury securities. This shift in investment sentiment has propelled rates lower.”
Is Now the Time to Buy?
If you’ve been on the fence about locking in your mortgage rate, now might be a good time to make your move. While Washington mortgage rates have dropped over the last few weeks, they’ve been up and down like a roller coaster since the end of last year. So there’s really no telling what will happen over the coming weeks.
According to the Mortgage Bankers Association’s latest forecast, published on April 18, 2017, the industry group expects mortgage rates to inch upward between now and the end of 2017. They predicted that the average rate for a 30-year fixed home loan would rise to 4.6% by the fourth quarter of 2017 (up from its current level of around 4.0%).
Home prices are another big consideration, especially for those who are planning to buy a home in Washington. While mortgage rates across the state have dropped in recent weeks, home values continue to rise. They’re rising more slowly, as we reported earlier this week. But they’re still trending north.
These trends give home buyers even more reason to purchase sooner rather than later. The recent drop in Washington mortgage rates, combined with the prospect of rising home values, makes now a good time to buy. So why not save money?
Disclaimer: This story contains mortgage rate trends reported by Freddie Mac. They are based on averages compiled from lenders across the country. The rate you receive on a home loan could differ from those presented above, for a variety of reasons. The type of loan being used influences the rate, as does the borrower’s credit score. Please contact us if you would like a customized rate quote.