PNW Mortgage Rates: Where 30-Year Rates Stand Today & What to Expect in 2026

Updated for Washington buyers, sellers, and investors

Why Mortgage Rates Matter Right Now

If you’ve been following the Pacific Northwest real estate market, you’ve seen how interest rates shape buyer and seller decisions.

We probably won’t see 3% loans again soon. However, the good news is that rates are starting to improve.

As of December 2025, many lenders are quoting 30-year fixed mortgage rates in the low-6% range. This shift is already helping both buyers and sellers, especially in South Sound communities.

Where Rates Stand in the PNW

Today, 30-year fixed rates across Seattle, Tacoma, Olympia, Shelton, and Chehalis fall between 6.0% and 6.25%.

Compared to last year’s high-6% to 7% rates, this change is welcome. In fact, more buyers are already stepping back into the market.

What to Expect in 2026

Experts predict that rates will hover around 6% throughout 2026. Some even believe we could see high-5% rates later in the year.

While this isn’t a huge drop, it does signal more stability. That can give buyers and sellers more confidence to act.

What This Means for Washington Homeowners

The New “Normal” for Rates

The ultra-low rates of 2020–2021 were rare. Most experts now consider 5.75% to 6.5% a realistic long-term range.

As a result, buyers and sellers can make better decisions when planning for the future.

Some Markets Will Stay Competitive

Metro areas like Seattle, Bellevue, and Redmond are likely to remain active. These places have strong job markets and limited inventory.

Smaller Markets May See More Movement

Communities like Puyallup, Graham, Yelm, Lacey, Shelton, and Chehalis tend to respond quickly to rate changes.

If rates dip into the high-5s, more buyers may enter the market—and affordability could improve.

More Sellers May Finally List

Homeowners with ultra-low rates have been holding off. However, if rates settle near 5.5%, some of them may be ready to move.

That could open up inventory across Pierce, Thurston, Mason, Lewis, and South King County.

What Buyers Should Know

Focus on the Monthly Payment

It’s tempting to wait for the “perfect” rate. Even so, waiting can mean missing the right home.

A 0.25% change in rate can impact your monthly payment significantly—especially in the $450K–$650K price range.

Instead of chasing a number, focus on what feels comfortable and fits your long-term plan.

Gradual Improvement in Affordability

Most forecasts show modest price increases of 1%–3%. This could mean:

More homes to choose from
Fewer bidding wars
More room to negotiate

Look for Seller Concessions

Across Western Washington, sellers are offering help to ease buyer costs. These may include:

2-1 temporary rate buydowns
Closing cost credits
Permanent interest rate reductions

These tools are common in Pierce, Thurston, Grays Harbor, and Lewis Counties.

What Sellers Should Keep in Mind

Presentation Still Matters Most

Buyers respond best to homes that are clean, staged, and well-maintained.

In popular markets like Bonney Lake, Gig Harbor, and Lacey, move-in-ready homes still attract strong interest.

Be Realistic With Pricing

Even if comparable sales support a higher price, buyers are focused on their monthly payment.

If a listing feels overpriced for the current rate environment, many buyers won’t even schedule a showing.

Offer Financing Support

Offering to help buyers reduce their rate or cover closing costs can set your home apart.

These incentives often increase interest and shorten time on market.

Jen’s Local Insight

I work with clients every day from Tacoma to Puyallup, Shelton to Chehalis. I see firsthand how quickly the local market reacts to rate changes.

Advice for Buyers

Don’t wait for rates to drop further. Instead, focus on what you can afford now. Use creative loan options and take advantage of seller support.

Advice for Sellers

Put your best foot forward. Price carefully. And be open to tools that make your home more attractive to today’s rate-conscious buyers.

Quick Rate Recap

Current 30-year fixed: Low-6% range
2026 outlook: 6.0%–6.5%, possible high-5% dip
Affordability: Slowly improving
Market tone: Balanced and more stable

Let’s Build a Plan That Works

Whether you’re looking to buy, sell, or invest in 2026, a thoughtful strategy is key. I’d love to help you navigate this next chapter.

📞 Jen Johnston
📧 JenJohnstonRealEstate@gmail.com
🌐 www.jenjohnstonrealestate.com
📍 Based in the South Sound | Serving the greater PNW

Interest Rates Market Analysis 2026