Mortgage Rate Predictions for 2026: What Washington Homebuyers & Homeowners Should Know

Mortgage rates continue to be one of the most talked-about topics for homebuyers and homeowners across Washington State. Whether you’re hoping to buy your first home, move up, or refinance, it’s natural to wonder: where are mortgage rates headed in 2026?

While no forecast is guaranteed, several respected housing and mortgage organizations regularly publish outlooks that can help set realistic expectations. Below is a Washington-focused look at what groups like the Mortgage Bankers Association, Freddie Mac, Fannie Mae, and Zillow are projecting — and what it could mean for buyers and homeowners here in the Pacific Northwest.

Where Rates Are Starting From (Why This Matters in Washington)

Washington home prices — especially in areas like Seattle, Bellevue, Redmond, Tacoma, and parts of Snohomish and Pierce counties — remain higher than the national average. That means even small changes in mortgage rates can have a meaningful impact on monthly payments.

Most forecasts are based on today’s rate environment, which is significantly higher than the historic lows of 2020–2021. Because of that, nearly all major forecasters expect gradual movement, not dramatic drops.

What Major Forecasts Say About Mortgage Rates in 2026

Here’s a high-level summary of current expectations for 30-year fixed mortgage rates in 2026:

• Mortgage Bankers Association (MBA): MBA projects rates remaining in the mid-6% range, with only modest improvement by the end of 2026.

• Fannie Mae: Fannie Mae expects rates to trend lower over time, with the possibility of ending 2026 closer to the high-5% range, assuming inflation continues to cool.

• Freddie Mac: Freddie Mac has emphasized rate stability over volatility, suggesting rates may move sideways with gradual easing rather than sharp declines with mortgage rates in the low-6’s.

• Redfin: Mortgage rates will gradually decline to the low-6% range.

• Zillow: Zillow forecasts mortgage rates likely staying above 6% for much of 2026, reflecting ongoing affordability challenges and cautious financial markets.

• MBS Highway: MBS Highway predicts mortgage rates will drop to the mid-5% range in 2026.

• Other housing economists (Realtor.com, NAHB): Many projections cluster in the low-to-mid 6% range for average rates throughout 2026.

The takeaway: most experts agree that 2026 is more likely to be a year of stability and incremental improvement, not a return to ultra-low rates.

What This Means for Washington Homebuyers

Buying in 2026 May Be About Strategy, Not Timing

If rates stay relatively stable:

• Waiting for a “perfect” rate may not be productive
• Negotiating seller concessions, closing cost credits, or temporary buydowns could matter more
• Being fully pre-approved will remain critical in competitive markets

Affordability Will Still Be Market-Specific

In Washington, affordability varies dramatically by location:

• King, Snohomish, and parts of Pierce County feel rate changes immediately
• Outlying and rural counties may offer more price flexibility

Choosing the right loan structure can be just as important as the rate itself.

What This Means for Washington Homeowners

Refinancing May Be About Opportunity Windows

If forecasts prove accurate and rates gradually improve:

• Some homeowners who bought or refinanced in 2024–2025 may see refinance opportunities later in 2026
• Rate-and-term refinances could make sense if savings justify the costs
• Renovation or debt-restructuring strategies may come back into play

Even a small rate improvement can matter when loan balances are higher — which is common in Washington.

Why Local Guidance Matters More Than Forecasts

National forecasts don’t account for:

• Washington’s higher home prices
• Local inventory trends
• Down payment assistance programs
• Renovation and specialty loan options
• Individual tax, income, and equity considerations

That’s why the best approach is usually planning with flexibility, rather than trying to time the market perfectly.

Bottom Line for Washington State Buyers & Homeowners

Most credible forecasts suggest:

• Mortgage rates in 2026 are likely to stay around the low-to-mid 6% range. 
• Some modest improvement is possible, especially later in the year
• Strategy, preparation, and loan structure will matter more than waiting for a dramatic rate drop
• In order to lock in a lower interest rate, buyers or homeowners need to be ready to move quickly as mortgage rates can be volatile and may change throughout the day.

If you’re planning to buy, refinance, or renovate in Washington State, having a clear plan — and understanding how rate trends affect your situation — is far more valuable than chasing predictions.

Thinking About Your Next Move?

If you’d like help:

• Running numbers based on today’s rates
• Exploring loan options that fit Washington’s market
• Planning for a future refinance opportunity
• Understanding how 2026 trends may impact you specifically

I’m always happy to help you think through your options with clarity and confidence. Let’s talk!