No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.
Mortgage rates have been on a steady increase for the past year. They’re a key component of home loans and determine how much a home loan will cost a borrower over the length of the term. Rates tend to differ slightly from one mortgage program to the next.
Considering the popularity of the 30-year fixed-rate mortgage loan, we’ll discuss rates for this particular program.
This type of home loan is by far the most popular mortgage product among Seattle home buyers and refinancing homeowners. So the rate trends for this particular loan are closely watched by many people.
Seattle 30-year fixed mortgage rates have been on an upward trend for a while now. For borrowers, that means if you wait, you could be paying more in interest over the term of your mortgage.
Mortgage rates have been increasing since the start of 2021.
The peak of rates over the past 5 years was during the week of November 8, 2018, when rates for 30-year fixed-rate mortgages was at 4.94%. Rates then sharply declined, but reversed course at the start of 2021. And they’ve been inching up ever since and have now surpassed the previous peak.
As of today, rates stand at 5.1%, according to Freddie Mac, which is quite a bit higher than where it was the same time last year.
Home prices in the Seattle metro area have risen steadily — and significantly — over the last few years, despite a decline from mid-2018 to mid-2019. Today, the average sale price in Seattle is $958,027, according to Zillow.
While it remains to be seen what will happen with home price trends, buyers certainly have a lot of incentive to get into the real estate market when considering how much equity they can quickly build as home prices continue to rise at the rate they’ve been increasing at. Just in the past 12 months alone, home prices in Seattle has risen 16.4%.
In addition to the incentive of homebuyers to get into the Seattle housing market, there is also plenty of encouragement for homeowners to refinance their mortgages who may have locked in a rate that’s higher than where rates are today. These homeowners could save a ton of money by refinancing at a much lower rate today.
That said, because rates are on the rise, refinance activity may not be as strong today as they were last year when rates were lower. According to the Mortgage Bankers Association, the Refinance Index was 71% lower during the first week of May 2022 compared to the same week last year.
Despite this, Seattle mortgage lenders are still seeing plenty of interest in refinancing.
If you are a homeowner in Seattle, you may want to consider refinancing to save a bundle over your mortgage term if you locked in at a higher rate when you originally applied for your mortgage.
If a mortgage is what you need to buy a home in Seattle, Sammamish Mortgage can help. We have been helping home buyers across Washington, Colorado, Idaho, and Oregon since 1992. We are a local, family-owned company offering competitive rates on a variety of mortgage programs, including the ever-popular 30-year fixed mortgage, as well as our Diamond Homebuyer Program, Cash Buyer Program, and Bridge Loans. Please contact us today for a rate quote, or with any financing-related questions you might have. We look forward to hearing from you!
Whether you’re buying a home or ready to refinance, our professionals can help.
{hours_open} - {hours_closed} Pacific
No Obligation and transparency 24/7. Instantly compare live rates and costs from our network of lenders across the country. Real-time accurate rates and closing costs for a variety of loan programs custom to your specific situation.