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Trends: Washington Mortgage Rates Jump in January 2018

Washington mortgage trends should create a sense of urgency among home buyers in the state, as well as homeowners who are planning to refinance. The average rate for a 30-year home loan just crossed the 4% threshold, according to the latest survey by The latest mortgage trends for Washington home buyers and homeowners planning to refinance should create a sense of urgency.

Updated on Washington Mortgage Rate Trends in 2018

Each week, the government-sponsored mortgage buyer Freddie Mac conducts a survey of more than 100 mortgage lenders nationwide to determine the average rates for home loans. They track rates for three products: the 30-year fixed home loan, the 15-year fixed, and the 5-year ARM loan.

Here are the averages from the latest nationwide rate survey:

  • 30-year fixed mortgage: 4.15%
  • 15-year fixed: 3.62%
  • 5-year adjustable (ARM) loan: 3.52%

Of course, these are just average rates for all borrowers. These numbers give us some insight into the overall mortgage rate trends in Washington State and across the nation. But they’re no substitute for an actual quote from a mortgage company. Please contact us if you would like to receive a rate quote tailored to your situation, and the kind of loan you need.

For the last few months (prior to this latest update) the average rate for a 30-year home loan had been hovering below 4%. On January 25, however, Freddie Mac’s economists reported that the closely watched rate increased to 4.15%. That was its highest level since March of 2017.

Over the last few months, mortgage rate trends in Washington State and nationwide could best be described as “steady.” But this latest uptick will likely get the attention of home buyers in the market for a mortgage loan, as well as homeowners planning to refinance. Previously, economists had predicted that rates would begin to rise gradually during 2018. So perhaps this is the beginning of that trend.

A quote from the latest report:

“Rates keep climbing. The 10-year Treasury yield reached its highest point since 2014 reflecting expectations of broad-based economic growth. Mortgage rates, in turn, followed the surge in Treasury yields. The 30-year fixed mortgage jumped 11 basis points to 4.15 percent, its highest level since March of last year [2017].”

Given this recent upturn in rates, and the fact home prices are still rising, now might be a good time to apply for that mortgage loan you’ve been considering. Borrowers who postpone their purchases until later in 2018 could encounter even higher housing costs.

Read: Washington market is still booming

Home Prices and Sales Were Up in 2017

Additionally, this latest report confirms that 2017 was the best year for home sales in Washington and across the U.S. in over a decade. As for home prices, the Federal Housing Finance Agency reports that prices nationwide rose by 6.5% from November 2016 to November 2017, with all regions showing positive 12-month changes.

But affordability remains an issue in many markets, including the Seattle metro area, which has appreciated rapidly over the last couple of years.

Disclaimer: This article provides an update on mortgage rate trends in Washington State, based on the weekly survey conducted by Freddie Mac. There are a variety of factors that can affect the rate you receive on a home loan, including your credit history and the type of loan you’re using. Please contact us if you have questions or would like to receive a rate quote for a home loan in Washington.

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