Washington Refinance Report: Refinancing Activity Picking Up in 2024

Published:
May 25, 2017
Last updated:
February 7, 2024
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Home price increases in Washington State have slowed over the past year, while interest rates have increased significantly. This has led to a slowdown in mortgage refinancing this past year.

However, home price values are expected to tick up in 2024, and mortgage rates are forecasted to dip at the same time. This brings good news for homeowners who are in the market to buy or refinance a home in Washington State in 2024.

According to Freddie Mac, mortgage rates are sitting at 6.6% as of February 2024. Home prices, meanwhile, are inching up.

While refinancing activity has slowed over the past couple of years due to increased rates, there’s been a recent uptick in refinancing. And experts agree that this trend will continue throughout 2024.

MBA Refinance Index Up Year-Over-Year

While the Mortgage Bankers Association (MBA) Refinance Index dipped 2% from the week before, it was 18% higher compared to the same week last year. Further, the refinance portion of mortgage activity inched up to 39.7% of total applications from 39.2% the week before.

If you locked in at a much higher rate when you originally took out your mortgage, refinancing now may be worth considering. It may also be a great idea if you can qualify for a lower rate due to improvements in your credit score and income.

Lower Mortgage Rates Open Up Refinancing Opportunities

The average rate for a 30-year fixed home loan was around 6.6% as of late February 2024. But as high as rates are now, they’ve actually come down over the past few months.

Generally speaking, when rates go down, 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, 2024 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.

Related: Forecast for Washington FHA rates

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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 real estate research firm Zillow, the average home price in Washington State is $562,290. That’s 0.8% higher than the same time last year. The real estate market in Washington State is relatively healthy right now.

That means homeowners are likely seeing an increase in value in their homes, which means a lot more equity. This could allow more Washington homeowners to refinance their mortgage loans in 2024, considering the potential dip in rates. Rising home values boost equity levels for homeowners, which can make it easier to qualify for a refinance.

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.

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Have Questions About Washington Home Loans?

Are you ready to apply for a mortgage to purchase a Washington home? If so, Sammamish Mortgage is here to help. We are a local, family-owned company based in Bellevue, Washington and have been serving the entire state since 1992, as well as Oregon, Idaho, and Colorado. We have plenty of mortgage programs for you to choose from with flexible qualification criteria. Please contact us if you have mortgage-related questions.

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