If you’ve been putting off buying a home due to high mortgage rates, now might be the time to take another look at the market. Mortgage rates have been on a downward trend recently, creating a new opportunity for buyers in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake to step back in.
According to Freddie Mac, mortgage rates have now declined for seven consecutive weeks, and the current weekly average is the lowest we’ve seen so far this year (see graph below):
While this drop may not seem drastic, it’s a meaningful shift—especially considering that experts had predicted rates wouldn’t reach these levels until later in the year.
Why Are Mortgage Rates Dropping?
Joel Kan, VP and Deputy Chief Economist at the Mortgage Bankers Association (MBA), explains that economic uncertainty has played a key role in bringing rates down:
“Mortgage rates declined last week on souring consumer sentiment regarding the economy and increasing uncertainty over the impact of new tariffs levied on imported goods into the U.S. Those factors resulted in the largest weekly decline in the 30-year fixed rate since November 2024.”
For buyers in Burien, Normandy Park, and Bonney Lake, this dip in rates offers a welcome relief heading into the competitive spring market. However, mortgage rates are known to fluctuate, so while this window of opportunity exists, it’s smart to stay prepared for potential volatility in the coming months.
How Lower Rates Boost Your Buying Power
Even slight changes in mortgage rates can have a significant impact on your monthly payment. Let’s break it down:
The chart below illustrates what a monthly principal and interest payment might look like for a $400,000 home loan if you purchased when rates were at 7.04% in mid-January (the highest point this year) compared to today’s lower rate (see below):
In just a few weeks, the estimated monthly payment on a $400,000 loan has dropped by over $100 per month. That kind of savings can make a big difference for buyers in SeaTac, Des Moines, and Sumner, especially when budgeting for long-term homeownership costs.
That being said, rates dropped faster than expected due to economic factors. While this has created an unexpected advantage for buyers, it’s important to remember that rates could shift again at any time. If you’re waiting for them to fall even further, it’s worth considering whether this current window is the right opportunity for you to act.
Bottom Line
With mortgage rates dipping, homebuyers in Tacoma, Puyallup, Auburn, Sumner, SeaTac, Des Moines, Burien, Normandy Park, Lake Tapps, and Bonney Lake now have more breathing room. If you’ve been waiting for the right time to enter the market, this could be your moment to take the leap.
BY KCM CREW | MARCH 11, 2025
