Pennsylvania Mortgage and Refinance Rates

related category image

Point of Interest

Current mortgage interest rates in Pennsylvania are comparable to the nationwide average, which makes this a great time to think about purchasing a home, especially considering that housing prices on the rise.

Mortgage Rates in Pennsylvania

Shop and compare the best mortgage rates in Pennsylvania.  Interest.com regularly surveys various sources to bring you current national average mortgage rates and terms.

Advertiser Disclosure |
Editorial Policy Disclosure
 
Average 30-year Fixed Rate: 3.71%

Use our mortgage calculator to find the right mortgage for your income.

TermRateRate Last Week
30-year fixed3.71%3.79%
30-year refinance3.75%3.84%
15-year fixed3.20%3.23%
5/1 ARM3.24%3.25%
30-year fixed jumbo4.00%4.04%

In recent years, the demand to purchase homes in the Pennsylvania housing market has increased. The housing climate in Pennsylvania has made it a seller’s market, which means there is more demand than there is supply.  Because of this, homes are being listed and sold relatively quickly, which can drive up housing prices and competition among buyers.

Compared to other states in the U.S., mortgage rates in Pennsylvania are pretty average and are only slightly higher. The nationwide mortgage rates for a 30-year fixed loan were 3.060% as of Aug. 10, whereas the 30-year fixed rate for mortgages in Pennsylvania was 3.14%.

Getting a mortgage in Pennsylvania 

Getting a mortgage in Pennsylvania is easy thanks to many great resources the state offers to homebuyers. There are several great homebuyer assistance programs and even tax credits you can take advantage of.

Similar to the current mortgage rate in Pennsylvania, the median home price is comparable to other states in the nation. The median value of an owner-occupied property in the United States is $204,900. Here is how the Keystone state data compares:

  1. Median home price: $174,100
  2. Average 30-year fixed rate: 3.71%
  3. Median monthly mortgage cost: $1,474
  4. Homeownership rate: 69.0% 

Pennsylvania state mortgage rate trends

The 30-year fixed mortgage rate in Pennsylvania has only slightly fluctuated since 2016. During that time, it reached as high as 4.88% in November of 2018 and as low as 3.23% at the beginning of 2020.

Timing is everything when it comes to getting a mortgage, especially in Pennsylvania, where it has been a seller’s market for the past few years. The best time to buy a house here is generally the fall and winter seasons. 

Homebuyers are usually busier at the start of the school year and during holidays, which means fewer competing offers will drive up the prices of homes. Sellers are also more motivated to sell during this timeframe to avoid closing a deal in the cold winter months ahead.

Pennsylvania state current mortgage rates

The current state of mortgage rates in Pennsylvania is a positive one. Rates are not necessarily the lowest they have ever been, but they are close to some of the lowest rates seen over the last decade. Today, the mortgage rate for a 30-year fixed loan in Pennsylvania is about 3.14%.

For the most part, mortgage rates will be similar for everyone right now, no matter where you are located in the state. The main thing to pay attention to is the vast difference in housing prices in each county in Pennsylvania. Since mortgage rates depend on both interest rate and loan balance, you won’t pay the same amount to own a home in Philadelphia County as you will in Forest County, for example. 

Most and least expensive places to live in Pennsylvania

There are a total of 67 counties in Pennsylvania with housing and costs of living that vary widely. The main factors that separate the most and least expensive places to live in this state are the median cost of buying a home, the job market, accessibility to outdoor recreational spots and school districts. 

5 most expensive

  1. Centre County: One of the most expensive counties in Pennsylvania, Centre County has a median home value of $220,500.
  2. Lehigh County: This county has a median home price of $200,100, which is equal to about $1,606 per month.
  3. Wayne County: The average cost of a home in Carver County is $181,000 with an average monthly cost of $1,369 for a mortgage.
  4. Monroe County: This county has a median home price of $167,000 and an average monthly mortgage cost of $1,679. 
  5. Philadelphia County: Philadelphia County is home to the largest city in Pennsylvania, and the median home price in this county is $156,800, with an average monthly mortgage cost of $1,299. 

5 least expensive

  1. McKean County: The least expensive county on the list, McKean County has a median home price of $79,800, with an average monthly mortgage cost of $933.
  2. Venango County: This county has a median home price of $85,700 and an average monthly mortgage cost of $952.
  3. Forest County: The average cost of a home in Forest County is $89,500, which is equal to paying about $784 per month.
  4. Warren County: Similar to Elk County, the median home price in Warren County is $95,400, and costs roughly $986 per month for a mortgage.
  5. Elk County: In this county, the median home price is $99,000, with an average monthly mortgage cost of $997.

Pennsylvania state mortgage resources and intricacies 

The state of Pennsylvania offers different home assistance programs and resources to help make your dream of owning a home come true. For starters, check out the Pennsylvania Housing Finance Agency (PHFA). It partners with brokers and lenders to offer mortgages with competitive rates and low fees. After closing on the loan, PHFA purchases those mortgages, making it easy for borrowers to make monthly payments directly to the finance agency.

One benefit of going through the PHFA is the Mortgage Credit Certificate that can reduce your federal tax bill. Use it to claim a tax credit of 20% to 50% of your mortgage interest payments, up to a maximum of $2,000 per year.

If you qualify, you could receive up to $6,000 in down payment and closing cost assistance thanks to the Keystone Advantage Assistance Loan Program. This provides a second mortgage loan to help with the associated costs of buying a home, and allows borrowers to receive up to 4% of the purchase price, up to $6,000, to be repaid monthly. 

If you are a first-time homebuyer, there are several programs available. FHA loans, for example, are a great option for buyers with lower credit scores looking to buy their first home. This program allows for down payments as low as 3.5%, which is quite low compared to the traditional 20% down payment requirement for conventional loans.

The final word 

If it’s your dream to own a home in Pennsylvania, you can make it happen. The state offers programs, tools and advice to equip you with the knowledge and resources you need to buy your next home. As an added bonus, mortgage rates in Pennsylvania are some of the lowest they have been in recent years, making it a good time to think about purchasing your next home.

Carrie Smith Nicholson

Contributing Writer

Carrie Smith Nicholson is an award-winning financial writer with a background in accounting and taxes. She has written for sites like Intuit QuickBooks, YAHOO! Finance, NBC News, Redbook Magazine, and many other finance outlets. She lives in Colorado Springs, Colorado with her husband and collection of succulents.