Mortgage Rates in Federal Way, Washington — March 2026
Updated March 2026 | Based on Federal Way market data and regional lending conditions
Federal Way is a growing city in Washington with a population of 99,037. The current 30-year fixed mortgage rate in Federal Way is 6.57%, which is 0.08% below the national average. With a median home price of $465,000 and a 20% down payment of $93,000, homebuyers can expect a monthly principal and interest payment of approximately $2,368.
Current Mortgage Rates in Federal Way, WA
Below are the current average mortgage rates available in the Federal Way area as of March 2026. Rates vary by lender, credit score, and loan-to-value ratio. Use our free calculator above to see your personalized estimate.
| Loan Type | Rate | National Avg | Difference |
|---|---|---|---|
| 30-Year Fixed | 6.57% | 6.65% | -0.08% |
| 15-Year Fixed | 5.81% | 5.89% | -0.08% |
| 5/1 ARM | 6.07% | 6.15% | -0.08% |
| FHA | 6.17% | 6.25% | -0.08% |
| VA | 5.97% | 6.05% | -0.08% |
| Jumbo | 6.77% | 6.85% | -0.08% |
Federal Way Housing Market Overview
The Federal Way housing market reflects moderate demand with prices near the national average. The median household income in Federal Way is $62,250, and the cost of living index is 108.5 (national average = 100). Based on the 28% affordability rule, you would need an income of approximately $116,914 to comfortably afford the median-priced home in Federal Way, which exceeds the current median household income.
Monthly Payment Breakdown for Federal Way
Based on the median home price of $465,000 with 20% down ($93,000), here is what you can expect to pay monthly in Federal Way:
15-Year vs. 30-Year Mortgage in Federal Way
Choosing a 15-year mortgage in Federal Way at 5.81% instead of a 30-year at 6.57% would save you $294,300 in total interest over the life of the loan. However, your monthly payment would be $3,101 instead of $2,368 — an increase of $733 per month.
Calculate Your Federal Way Mortgage Payment
Use our free calculator to get a personalized estimate based on your loan amount, interest rate, and term.
Open Free CalculatorFrequently Asked Questions About Mortgages in Federal Way
What are the current mortgage rates in Federal Way, WA?
As of March 2026, the average 30-year fixed mortgage rate in Federal Way, Washington is 6.57%, while the 15-year fixed rate is 5.81%. FHA loans average 6.17% and VA loans 5.97%. These rates are 0.08% below the national average of 6.65%.
How much is a monthly mortgage payment in Federal Way?
Based on the median home price of $465,000 with 20% down, the estimated monthly mortgage payment in Federal Way is $2,368 for principal and interest. Including property taxes of $360/month, the total monthly housing cost is approximately $2,728.
What income do I need to buy a home in Federal Way?
Using the 28% rule, you would need an annual income of approximately $116,914 to afford the median-priced home in Federal Way at $465,000. The median household income in Federal Way is $62,250. This means most households would need to either earn above the median or consider homes below $465,000.
Is Federal Way a good place to buy a home in 2026?
Federal Way has a moderate cost of living with a cost of living index of 108.5 (national average = 100). The property tax rate in Washington is 0.93%, which is near the national average. Federal Way has a population of 99,037 and offers a balanced lifestyle.
Mortgage Rates in Other Washington Cities
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Last updated: March 2026. Rates are approximate averages based on regional lending data for the Federal Way, Washington area. Individual rates may vary by lender, credit score, loan amount, and other factors. Use our free calculator for a personalized estimate.