Washington, DC Mortgage and Refinance Rates

Current mortgage rates in Washington, D.C.

As of Tuesday, November 5, 2024, current mortgage interest rates in Washington, DC are 6.90% for a 30-year fixed mortgage and 6.05% for a 15-year fixed mortgage.

While D.C. mortgage rates remain close to the historical norms, the D.C. housing market has seen home prices decline, bucking the national trend. The median sales price in Washington, D.C. was $589,900 in Feb. 2024, down 4.1 percent year-over-year, according to Redfin.

Refinance rates in Washington, D.C.

Over the last two years, refinance rates in Washington, D.C. have seen a notable increase, reducing the benefit of refinancing for residents of the capital. The current environment of high rates makes refinancing difficult, yet you could see significant savings if rates drop and you secure a more favorable rate. Use our mortgage refinance calculator to assess refinancing in Washington, D.C. and determine if it aligns with your financial goals.

Washington, D.C., borrowers who saw their home equity rise during the pandemic may be interested in refinancing their mortgage as a way to tap those funds. 

Washington, D.C. mortgage rate trends

While mortgage rates are difficult to predict, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Washington, D.C. Because the Federal Reserve may cut rates this year, many economists expect mortgage rates to dip in 2024 and into 2025.

National mortgage rates by loan type

Mortgage statistics for Washington, D.C.

The nation’s capital has seen its median home sales prices peak in 2022, cresting above $700,000. Since then, prices have come down. If you’re buying in Washington, D.C., here are some interesting stats to know: 

• Average home value (as of Feb. 2024): $610,180 (Zillow)
• Homeownership rate (as of Q4 2023): 38.2% (U.S. Census Bureau)
• Number of homes for sale (as of Feb. 2024): 1,620 (Zillow)
• Homes with price drops (as of Feb. 2024): 22.1% (Redfin)

Mortgage options in Washington, D.C.

If you’re looking to get a mortgage in Washington, D.C., there are several options you could potentially qualify for:

• Washington, D.C. conventional mortgages: To qualify for a conventional mortgage, you’ll need a minimum credit score of 620 and a debt-to-income (DTI) ratio of no more than 43 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Washington, D.C. FHA loans: If your credit history disqualifies you from a conventional mortgage, you might be able to obtain a loan insured by the Federal Housing Administration (FHA). If you have a down payment of at least 3.5 percent, you could qualify for this type of loan with a credit score as low as 580.
• Washington, D.C. VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage backed by the Department of Veterans Affairs (VA). A VA loan doesn’t require a down payment or mortgage insurance, but you do need to pay a funding fee, which starts at 2.15 percent for homebuyers.

First-time homebuyer programs in Washington, D.C.

D.C. offers programs that first-time homebuyers can take advantage of. These programs include:

• DCHFA Open Doors mortgage: The Open Doors program through D.C.’s housing finance agency (DCHFA) offers both down payment assistance and a low-interest primary loan for qualifying borrowers. To qualify, you must have a credit score of at least 640 and have a maximum income of $199,200, among other requirements.
• DCHFA DC4ME program: The DC4ME program offers a reduced interest rate mortgage for qualifying government employees. To qualify, you must be a first-time homebuyer, and at least one applicant must be employed full-time by the District.
• DHCD Home Purchase Assistance Program (HPAP): The Department of Housing and Community Development (DHCD) offers interest-free loans and closing cost assistance through a program known as HPAP. Currently, all funds are allocated for this program, but the program may open again in the future.

How to find the best mortgage rate in Washington, D.C.

• Step 1: Strengthen your credit score - Long before you start looking for a mortgage lender or applying for a loan, give your finances a checkup, and improve your credit score if needed.
• Step 2: Determine your budget - To find the right mortgage, you’ll need a good handle on how much house you can afford.
• Step 3: Know your mortgage options - There are a few different types of mortgages.
• Step 4: Compare rates and terms from several lenders - Rate-shop with at least three different banks or mortgage companies.
• Step 5: Get preapproved for a mortgage - Getting a mortgage preapproval is the only way to get accurate loan pricing for your specific situation.

Additional Washington, D.C. mortgage resources 

• Washington, D.C. loan limits: Learn the FHA and conventional loan limits for Washington, D.C.
• Washington, D.C. mortgage lenders: Review an extensive list of D.C. mortgage lenders.
• Washington, D.C. housing market: Read up on everything you need to know about the D.C. housing market.

Meet our Bankrate experts

Written by: Andrew Dehan, Writer, Home Lending

I’ve covered mortgages, real estate and personal finance since 2020. At Bankrate, I’m focused on all of the factors that affect mortgage rates and home equity. I enjoy distilling data and expert advice into takeaways borrowers can use. Prior to Bankrate, I wrote and edited for Rocket Mortgage/Quicken Loans. My work has been published by Business Insider, Forbes Advisor, SmartAsset, Crain’s Business and more.

Read more from Andrew Dehan

Edited by: Laurie Dupnock, Editor, Home Lending

I’ve spent five years in writing and editing roles, and I now focus on mortgage, mortgage relief, homebuying and mortgage refinancing topics. I’m most interested in providing resources for aspiring first-time homeowners to help demystify the homebuying process. In 2021, I earned a Poynter ACES Certificate in Editing. I have an MA in English. 

Read more from Laurie Dupnock