Summary: Mortgage rates have been on the decline over the past year throughout 2019. But where are mortgage rates expected to go for the rest of the year and into 2020? This article will go over the mortgage rate forecast for Washington State and the country.
Average mortgage rates in Washington State have steadily been decreasing over the past few months. In fact, rates went from 4.51% at the start of January 2019 and ended the year off at 3.74%. And rates are still on their way down. As of the second week of February 2019, mortgage rates are down to 3.45%. Those are just a few of the trends identified in the latest mortgage rates chart for Washington State and the nation as a whole.
U.S. and Washington Mortgage Rate Chart
On February 6, 2020, the government-sponsored mortgage corporation Freddie Mac released the results of its latest nationwide survey of mortgage rates. This particular survey goes out to more than 120 lenders nationwide, including some in Washington State. The mortgage rate chart included shows the results of their survey over the last year or so, for three different products.
The Freddie Mac survey includes the following loan types:
During the week of February 6, 2020, the average rate for a 30-year fixed mortgage dipped to 3.45% from the previous week’s average of 3.51%. The other two loan categories tracked by Freddie Mac were also down a bit last week. The average rate for both a 15-year fixed mortgage and a five-year ARM are now 2.97% and 3.32%, respectively.
Rates Are Down Since Late 2018
The mortgage rate chart for Washington and the rest of the nation shows how rates have actually been dropping since late 2018. Rates peaked in November 2018 at 4.94% over the past couple of years, and since then, they’ve been on a steady descent, despite the odd uptick here and there.
The mortgage rate trends we have seen so far in 2020 are actually on par with what economists and housing analysts were predicting. Last year, the general consensus was that U.S. and Washington mortgage rates would stay under 4.0%. As you can see from the rate chart above, this is on par with what has been happening so far. Experts predict mortgage rates will remain mostly stable throughout 2020.
Granted, there are still a few month left in the year. So maybe we will see if there will be an increase in rates going forward. There is no way to know for sure.
Forecast Predicts Lower Borrowing Costs
And speaking of mortgage rate forecasts, a key industry group recently updated its long-range forecast for mortgage rates in Washington and across the country.
In January, the Mortgage Bankers Association published an update to its long-range finance forecast. This forecast includes a variety of economic indicators, mostly those that relate to the housing market. According to their forecast, MBA analysts expect the average rate for a 30-year fixed mortgage to remain stable between now and the end of 2020.
With lower rates and a strong labor force right now, consumer confidence is up. Loans are more affordable and easier to obtain, making now a great time to buy a home in Washington State. And with home prices expected to continue climbing this year, getting into the market sooner rather than later will allow homebuyers to take advantage of growing home equity, allowing them to expand their wealth over time.
With rates as low as they are these day, you may want to consider making a home purchase soon!
Disclaimer: This article contains forecasts and predictions relating to housing conditions in Washington State and across the nation. Data and projections were provided by third parties not associated with our company. We have compiled this information as an educational service to our readers.
Get a Rate Quote For Your Washington Mortgage Loan!
Whether you’re ready to apply for a home loan in Washington or just have some questions about them, we can help. Sammamish Mortgage has proudly served the Pacific Northwest for more than 28 years. We are a family-owned company offering highly competitive rates on a variety of mortgage products. Please contact us if you would like a mortgage rate quote for buying or refinancing a home in Washington.