Mortgage Rates Hit a 3-Year Low. Here’s Why That’s Still a Big Deal

If you’re one of the many buyers in King or Snohomish County who’s been waiting for mortgage rates to fall, it’s worth knowing: that shift has already started.

Recently, rates briefly dipped into the high 5% range, something we haven’t seen in nearly three years. While they’ve moved back into the low 6s for now, most expert forecasts expect rates to hover in this general range throughout the year.

And for buyers in our local market, that matters. Here’s why.

Why Today’s Rates Are a Big Deal for Buyers Locally
Mortgage rates don’t just impact how much interest you pay over time, they shape what’s realistic when you’re shopping in competitive markets like ours.

When rates were closer to 7% last year, many buyers here felt stuck. Monthly payments jumped, affordability tightened, and buyers who were comfortable at a certain price point suddenly had to recalibrate or pause altogether.

Now that rates have eased, the math is starting to look different.

Borrowing costs are currently at their lowest levels in almost three years, and even a modest shift in rates can meaningfully affect purchasing power in our price ranges.

At around 6%, buyers purchasing a $700,000 home are seeing:

• Lower monthly payments
  Compared to a 7% rate, the monthly payment, with typical financing, is roughly $400–$450 lower per month.
• More flexibility in competitive neighborhoods
  That difference can help buyers feel more comfortable competing in popular areas, adjusting offer terms, or choosing a home that better fits their needs instead of settling.

In a market where small changes can make a big difference, this shift is meaningful, especially compared to where we were just a year ago.

Why This Matters Beyond One Buyer
According to the National Association of Realtors, when mortgage rates sit at or below this range:

• 5.5 million more households nationwide can afford the median-priced home
• Roughly 550,000 of those households are likely to buy within the next 12–18 months

Locally, that translates into more buyers slowly re-entering the market, not all at once, but steadily.

In King and Snohomish Counties, we’re already seeing this play out in certain price points and neighborhoods: more showings, more second looks, and buyers who had stepped back last year starting to re-engage.

This is why timing matters. Buyers who revisit their numbers early often have more options and less competition than those who wait until activity visibly ramps up.

And while many buyers are focused on waiting for rates to dip back into the high 5s, the financial difference between a low 6% and a high 5% rate on a $700,000 purchase is often smaller than expected. The much larger shift already happened when rates moved down from the 7s.

What More Buyers in the Market Could Mean
As rates ease, more buyers are likely to re-enter the market. In King and Snohomish Counties, that often means increased competition first — not an immediate jump in inventory.

For buyers, this can mean:

• More multiple-offer situations in popular neighborhoods
• Less negotiating power as activity increases
• Fewer “quiet” opportunities

This is why some buyers choose to act while competition is still relatively manageable, rather than waiting for the crowd.

What If Rates Drop After You Buy?
Many buyers worry about locking in today’s rate and missing out if rates fall further. The reality is, you’re not locked in forever.

If rates drop meaningfully in the future, refinancing may be an option. While it’s never guaranteed and depends on your financial situation at the time, refinancing gives buyers flexibility, especially compared to waiting indefinitely and missing out on a home that fits their needs now.

The key is buying a home you’re comfortable with at today’s payment, not trying to predict the perfect rate.

An Important Call-Out
Mortgage rates don’t operate in a vacuum, especially here.

Home prices, neighborhood-level inventory, property taxes, insurance costs, and your personal financial picture all matter. A lower rate doesn’t mean every home suddenly works for every buyer, and it doesn’t replace the need for a thoughtful strategy.

That’s why getting pre-approved and reviewing real numbers with a trusted local lender is so important. The goal isn’t just to qualify, it’s to understand what feels comfortable and sustainable for you.

That said, this rate environment is opening doors for buyers who felt priced out in 2023 and early 2024. If buying didn’t make sense for you before, it may be worth taking another look now.

Bottom Line
Rates may go down, stay flat, or rise again. Prices may soften in some areas and climb in others. What is predictable is that competition tends to increase as affordability improves. Mortgage rates reaching a three-year low isn’t just a headline for many buyers it’s the difference between waiting and moving forward.

If you’ve been on the fence, this is a good moment to re-run the numbers and see what’s changed. You may find the monthly picture looks very different than it did not long ago.

The question isn’t “Is now perfect?” It’s “Does buying now support my goals and timeline?”

I’m always happy to help walk through what today’s rates mean for your budget, your options, and your timing.