With house values still rising across the state, and a recent drop in mortgage rates, 2017 might be a good time to refinance a home loan in Washington.
Earlier today, Freddie Mac published the results of its latest weekly survey of the mortgage lending industry. And it brought good news for homeowners who are in the market to buy or refinance a home in Washington State.
According to Freddie Mac, mortgage rates dropped to their lowest level of the year (to date) during the week of May 25, 2017. Home prices, meanwhile, continue to trend upward. Here are the latest trends and stats:
Low Mortgage Rates Open Up Refinancing Opportunities
At the start of this year, the average rate for a 30-year fixed home loan was around 4.20%. It has fluctuated a bit since then, and is currently averaging just over 4%, as of May 25, 2017. Rates have also dropped for other mortgage products, including 15-year fixed and 5/1 ARM loans.
Generally speaking, when rates go down like this, a large number of Washington homeowners are able to refinance their mortgages to lower their monthly payments.
Depending on your current interest rate and your home equity situation, 2017 might be a good time to refinance your home in Washington State. Please contact our staff if you’d like to know how it might work out for you, based on your current mortgage situation.
Washington State Home Prices Continue to Climb
Home prices in Washington State, meanwhile, continue to rise steadily in nearly every city. This means equity levels for homeowners are also on the rise.
According to a recent report by the Runstad Center for Real Estate Studies at the University of Washington, the state’s median sales price climbed to $324,300 during the first quarter of 2017. That’s 12.1% higher than the same time last year, and the highest first-quarter price ever recorded in the state.
This could allow more Washington homeowners to refinance their mortgage loans in 2017, especially if rates drop further over the coming weeks and months. Rising home values boost equity levels for homeowners, which can make it easier to qualify for a refi.
Will a Refi Work for You?
Every refinancing situation is different, because there are several variables involved. If your primary goal is to save money over the long term, you’ll want to start by calculating your break-even point. This is the point at which the money you save each month (after refinancing) begins to surpass the amount you paid in closing costs.
We can help you determine if it makes sense to refinance your home in Washington, by evaluating your current mortgage situation and your financing goals. Refinancing doesn’t make sense in every situation. But with home prices rising and mortgage rates on a downward trend, you might be one of the growing number of homeowners who could benefit from a Washington home refinance.
Please contact our staff if you have any questions about refinancing your mortgage, or if you’d like to receive a personalized rate quote.