Mortgage rates in Washington

Quick insights

• Your mortgage interest rate plays a major role in both your monthly payments and the total cost of your home over time.
• In Washington, mortgage rates can fluctuate based on a mix of factors including the type of loan you choose, the local real estate market and larger national trends like shifts in inflation.
• Rates don’t stay the same for long, so it’s smart to stay updated on what’s happening in your target area—whether you’re eyeing a tech hub in Seattle or something quieter on the Olympic Peninsula. 

From modern condos in downtown Seattle to cozy homes in Spokane and scenic properties in the Puget Sound area, Washington offers a wide range of housing options. Because of this variety mortgage rates can differ based on where you’re buying and what type of property you’re interested in. Local demand, housing inventory and even microeconomic conditions can all influence the rate you’re offered. That’s why understanding how mortgage rates work in Washington and staying current on trends in specific areas can make a real difference in what’s affordable for you. 

In this article, we’ll walk through how mortgage rates work in Washington, what could influence them and where to explore rate information as you prepare to buy or refinance.refinance-hl000061

How to find Washington mortgage rates

Finding the right mortgage rate in Washington starts with knowing where and how to look. Rates can vary from one region to another, so a little research can go a long way in helping you lock in the best possible deal. 

Here are a few ways to get started:

• Use a zip code search tool: To see rates specific to your area, visit our current mortgage rates page and enter your desired five-digit zip code into the online mortgage rate tracker. This gives you a snapshot of current offers tailored to that location. 
• Stay current with daily updates: Mortgage rates shift frequently, sometimes even daily, so make sure you’re checking a resource that updates rates in real time or at least on each weekday. Our rate table is updated every weekday, Monday through Friday, so you’ll have access to the latest rates available.
• Explore refinance opportunities: If you already own a home and are considering refinancing, note that refinance rates can differ from purchase rates. Check our mortgage refinance rates page to see what fits your situation best. 
• Talk to a local lending advisor: A Washington-based Home Lending Advisor can walk through options, explain how rates are determined and help you with your goals.
• Get prequalified or preapproved: Starting the mortgage prequalificationchase-prequalification or preapproval process can give you insight into what rate range you may qualify for and help you plan your home search with more confidence.

U.S. mortgage rate trends

Current 30-year mortgage rates have fallen between 5% and 10%, and here are some annual averages of 30-year fixed-rate mortgage rates:30yr-fixed-mortgage-average-fed-reserve-25

• 1974: 9.19%
• 1982: 16.04%
• 1990: 10.13%
• 1998: 6.94%
• 2006: 6.41%
• 2014: 4.17%
• 2020: 3.11%
• 2024: 6.72%

Factors affecting mortgage rates in Washington

Mortgages rates in Washington can be influenced by a combination of personal financial factors and broader market conditions. While some elements are unique to each borrower, others reflect trends in the national economy or local housing markets.

What influences your mortgage rate in Washington?

Your finances play a bigger role than you might think. While national interest rate trends affect the broader mortgage landscape, your personal financial profile can be just as important when it comes to locking in a competitive rate here in the Evergreen State. Some of the factors that can have an impact on your mortgage rate include credit history, income stability and the size of your down payment. 

Here are the key areas mortgage providers consider before preparing your loan application:

• Your credit habits: Lenders want to see a strong pattern of responsible borrowing. If you’ve kept up with payments and maintained a solid credit score, you may qualify for lower rates. On the flip side, high balances or a history of missed payments may raise red flags.
• Income reliability: A steady job history and consistent income tells lenders you’re likely to make timely mortgage payments. Whether you’re working in tech in Bellevue or healthcare in Spokane, financial consistency matters more than the specific field you’re in.
• Type of employment: Self-employed? On contract? Seasonal worker? While these jobs are becoming increasingly common, non-traditional sources often require more documentation. Long-term or permanent positions could positively influence your mortgage rate. 
• How much you owe elsewhere: Your debt-to-income (DTI) ratio (DTI) helps lenders understand how stretched your budget is. If you already have a lot of monthly obligations, like car payments or student bills, you may be offered a higher interest rate to offset the risk.
• Savings and backup funds: Beyond your income, mortgage lenders also like to see that you’ve got some savings set aside. Having a financial cushion, such as an emergency fund or investments, shows you’re prepared for unexpected expenses and lowers your risk profile.
• The size of your down payment: Putting more money down upfront lowers the loan provider’s risk and often leads to better rates. Plus, a higher down payment could help you avoid private mortgage insurance (PMI), saving even more in the long run.
• Other contributing factors: Loan providers may also weigh details like the loan term (15, 20 or 30 years), whether the home will be your primary residence or an investment property, any recent major financial events or if you’re applying with a co-borrower. All of these factors help shape the overall risk assessment and influence your final interest rate. 

How the economy shapes mortgage rates in Washington

Mortgage rates across Washington, from Seattle to Bellingham, are influenced by big-picture economic shifts. One of the biggest drivers? Decisions made by the U.S. Federal Reserve (commonly referred to as “the Fed”). When the Fed adjusts the federal funds rate (the interest rate banks use when lending to each other), mortgage providers often respond by raising or lowering their own rates. 

Inflation trends, job market strength and national economic outlooks also play a key role. While these changes happen on a national scale, they directly affect what homebuyers in Washington pay to borrow money. Staying informed on Fed policy and broader market conditions can help you better anticipate rate changes and make well-informed decisions.

Mortgage rates by loan type

Your mortgage rate in Washington will also depend on the type of loan you choose. Each option comes with unique terms and implications:

• Fixed-rate mortgages: With a fixed-rate loan, your interest rate stays the same throughout the life of the loan—whether it’s 15, 20 or 30 years. That means your monthly principal and interest payments remain steady.
• Adjustable-rate mortgages (ARMs): ARMs typically start with a lower rate than fixed mortgages, but that rate is only guaranteed for an initial period (like 5, 7 or 10 years). After that, it adjusts at regular intervals based on market conditions. This type of loan can make sense for homebuyers who expect to sell, refinance or move before the rate changes.
• Federal Housing Administration (FHA) loans: Backed by the Federal Housing Administration, FHA loans are designed to help first-time homebuyers and individuals with smaller down payments or less-than-perfect credit. These loans often feature lower interest rates and more flexible approval requirements. 
• Veteran’s Affairs (VA) loans: Available to eligible veterans and active-duty service members and certain military spouses, VA loans are supported by the U.S. Department of Veterans Affairs. VA loans typically offer competitive rates, no required down payment and no private mortgage insurance (PMI).
• Jumbo loans: For homes prices above the standard conforming loan limits, which is common in high-cost areas like Seattle lor Bellevue, a jumbo loan may be required. Because these loans carry more risk for mortgage providers, they often involve stricter credit and income requirements and sometimes come with slightly higher interest rates.

How mortgage rates impact affordability in Washington

Mortgage rates have a big influence on how much house you can afford in Washington. Even a small change in your interest rate can make a noticeable difference in your monthly payment, and in the total amount you’ll pay over the life of your loan. Lower interest rates generally translate to lower monthly costs and significant savings in the long run. Your mortgage term (such as 15 or 30 years) also plays a role in determining your payment amount and how much interest you’ll end up paying overall.  

To better understand how these factors work together, tools like mortgage affordability calculators or conversations with mortgage professionals can provide helpful guidance.

In summary

Whether you’re getting ready to buy a home in Tacoma or thinking about refinancing your place in Spokane, partnering with a local mortgage professional can make all the difference. A  Washington-based Home Lending Advisor can help you understand the latest rates, break down your loan options and offer guidance based on your goals and financial picture. 

With the right advice and a clear plan, you’ll be better equipped to take the next big step toward homeownership, confidently and on your terms.