Seattle Real Estate News

Mortgage applications surged 11.2% last week, continuing a strong start to the spring homebuying season, according to the latest Mortgage Bankers Association (MBA) report. Falling mortgage rates have fueled demand, with the average 30-year fixed rate dropping to 6.67%, its lowest level since October 2024.

• Refinance applications soared 16% from the previous week, marking a 90% year-over-year increase.
• Purchase applications rose 7% seasonally adjusted, up 4% from last year.
• FHA purchase applications jumped 11%, while VA loan applications increased to 15.9% of total volume.
• Average loan size hit a record high of $460,800.

The March MCT Indices Report showed a 27.91% increase in mortgage lock volume, aligning with seasonal trends. Analysts expect continued strength in mortgage activity through March and April, with possible slowing in the summer.

Looking ahead, market watchers anticipate the Federal Reserve will hold rates steady in March and May, with a potential rate cut in June, depending on economic indicators like tariffs, Nonfarm Payroll, and inflation data.

Since March of 2020 and the COVID-19 Pandemic, "normal" has been difficult to describe and for those thinking of buying a home over the last few years, the market has been anything but what used to be though as "normal".  Property appreciation ascended rapidly due to high demand and lack of inventory  and mortgage rates jump significantly due to economic concerns. 

To buy now or wait. Higher mortgage interest rates  generally mean a larger monthly payment. Mortgage rates change daily and PLEASE do not expect rates will come back down to 2021 level again.  There are options to lower your rate such as with temporary rate buy-down option or with an Adjustable Rate Mortgage (ARM). 

Your goal is to have a monthly mortgage payment that is within your budget and not to overstretch yourself financially leaving nothing for repairs, living expenses and emergency savings. If you can comfortably afford the mortgage payment, then now is the time to buy. Else, waiting would be more prudent. 

Timeline. If you are planning to stay put for only a year or two, in this current economic cycle, waiting would be more prudent. 

Housing market. Buying a house in a more balanced or "normal" market when you are up against 1 or 2 other buyers rather than 20 and where you can actually inspect the house may be better fit your risk appetite than buying during the 2021 housing market.