Interest Rates and Buying a House in Washington

As of April 16, 2025, the average interest rate for a 30-year fixed mortgage was 6.86%, and 6.35% for a 30-year fixed VA home loan, according to Mortgage News Daily. Many have predicted rates will come back down again to help buyers in 2025. But so far, we have seen rates bouncing up and down with economic uncertainty being the main reasons.

Higher interest rates have caused many potential home sellers to hold off on plans simply because they don't want to lose their historically low interest rate or simply can't afford the higher monthly payment when buying another home. This has contributed to a lack of homes for sale in Washington, but we have seen a big increase in homes for sale since January 2025. There are also more new construction homes for sale, in Snohomish County which has helped the market. The good news is, there are loan programs out there that can help many buyers to reach the goal of homeownership and there are still some great deals on homes for sale too.

Are Interest Rates Going to Drop in 2025?

Many think rates will drop in 2025, but so far, they have not. The last significant drop was around March 31 2025, at about 6.69% for a 30-year fixed rate. Courtesy of Mortgage News Daily. However, many things are still up in the air with tariffs and new manufacturing in the US. Some people believe rates will not lower very much this year, while others are hoping for big changes. We hear of many people who are no longer holding off to sell their homes. Regardless, we are already seeing more homes hit the market this spring!

Is it a good idea to lock in a mortgage rate?

The hope is that mortgage rates will lower back down once inflation is back under control, but there are never any guarantees when predicting mortgage rates and trying to time the market. However, one guarantee is the sooner you lock in a mortgage, the sooner your home equity clock starts ticking. If you’re ready to become a homeowner, reach out to a lending professional to see what rate and loan type you can qualify for. And if you would like to speak with a trusted local lender, I would be happy to help with a referral!