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Pennsylvania Mortgage Rates for February 2019

In Pennsylvania, 30-year mortgages currently have an average rate of 4.64%. The current average rate for 15-year loans is 4.13%, and 5/1 adjustable-rate mortgages (ARM) average around 4.00%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.64%–0.02%–0.23%
15-year fixed4.13%–0.02%–0.24%
5/1 ARM4.00%+0.00%–0.08%
Rates for a $200,000 loan with 20% down payment

Locking in a mortgage rate can be tricky, especially if you think rates may change drastically before you close the deal on your new home. The many factors that affect rates make it a challenge to predict the precise behavior of mortgage rates. Our research on mortgage lender offers in the Keystone State gives you a better way to compare the many lender options you'll come across.

Best Mortgage Rates in Pennsylvania

Currently, the best published rate for a 30-year mortgage in Pennsylvania is 4.13%. The lowest in-state rate for a 15-year home loan is 3.63%, while 5/1 ARM rates go as low as 3.13%.

While mortgage rate offers tend to be better for applicants who have a strong credit history and financial profile, other variables can also play a significant role. For instance, interest rates on all types of credit move in conjunction with certain index rates that are determined by market and government action. Having some familiarity with the current state of the economy helps ensure that you've chosen an appropriate time to look for mortgage rates.

The rates we track are based on an assumed home purchase price of $200,000 and a down payment of 20%. As a result, it's best to think of the following numbers as the minimum baseline for a competitive home loan offer in Pennsylvania. Higher loan amounts and smaller down payments will typically lead to higher rate quotes, so bear this in mind when you begin collecting quotes for your own purchase or refinance.

Current Mortgage Rate Forecast for Pennsylvania

Given the recent activity of the Federal Reserve's Open Market Committee (FOMC), Pennsylvania's interest rates are less likely to rise in 2019 than many anticipated. The FOMC meets periodically to raise or lower the federal funds target rate. The federal funds rate is the rate that banks pay to borrow money—a cost that the banks then pass on in their pricing of consumer credit.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

At the end of 2018, the FOMC voted to raise the target federal funds rate by 25 points, which moved it to a range of 2.25%-2.50%. While the general expectation was that additional rate hikes would follow soon, the FOMC surprisingly changed course in January. Currently, the Fed's official position is one of watching and waiting for more definitive information about the state of the economy.

For Pennsylvania's aspiring homeowners, this pause is a good chance to find more affordable mortgage options. While the supply of housing remains tight relative to the high demand, lower rates can only help buyers reduce costs or expand their purchasing power. Overall, home loan rates remain historically low compared to past decades.

Rates at Pennsylvania's Most Popular Mortgage Lenders

While online mortgage lending is gaining in popularity, local banks are still the first place that many applicants think of when it's time to find a mortgage lender. We gathered mortgage rates from the most popular banks in Pennsylvania for a quick look at which institutions might offer better deals.

Column graph comparing 30-year mortgage rates at major Pennsylvania banks

It turned out that there's only a small difference in mortgage rates among the state's major banks, with about 27 basis points separating the highest and lowest rates. After considering the potential effects of individual credit score and debt-to-income ratio, we're left with little evidence to suggest that borrowers will consistently get lower rates from any one bank in Pennsylvania.

What does this mean for you as a borrower? Regardless of whether some lenders appear more affordable now, you should take the time to request mortgage quotes from a broad selection of providers. There's no substitute for comparison-shopping quotes specifically tailored to your situation, whether you do that online or by calling up individual banks. Just keep in mind that there are plenty of elements to compare beyond just the APR on a mortgage offer, such as closing costs and escrow requirements.

Comparing Home Loan Rates by City

While mortgages in Pennsylvania and elsewhere are all tied to the ebb and flow of nationwide interest rates, we collected rate quotes from several of the state's biggest metropolitan areas to check whether local real estate markets have any effect on local home loan rates.

MSAAverage mortgage rateMedian home value
Philadelphia-Camden-Wilmington4.93%$264,582
Pittsburgh4.88%$161,519
Allentown-Bethlehem-Easton4.99%$226,465
Scranton--Wilkes-Barre--Hazleton4.93%$146,185
Harrisburg-Carlisle4.98%$196,382
Average rate is for a 30-year mortgage with a 20% down payment.

For the most part, mortgage rates will be similar for all Pennsylvanians wherever they're located in the state. Home shoppers should pay more attention to the contrasting real estate values that distinguish each city. Because your monthly mortgage costs will depend on both interest rate and loan balance, similar rates statewide don't necessarily mean that it costs the same to own a home in Pittsburgh as in Allentown.

Evaluating Your Mortgage Options: An Example in Pittsburgh

If your situation calls for it, there are a few definite ways to lower your mortgage rate. Choosing an alternative loan type is the most straightforward method. By swapping out the usual 30-year mortgage for a shorter repayment term or an adjustable-rate structure, it's possible for homeowners to save thousands in interest over the life of their home loans.

To see this at work, we can use the example of a homebuyer in Pittsburgh who is buying a $200,000 property with a down payment of 20%. Using Pittsburgh's current average of 4.88% for a 30-year fixed-rate mortgage, this homebuyer faces a monthly payment of at least $848 and total interest of up to $144,999.

While it's often useful to think in terms of lifetime interest, few families plan on staying in one home for 30 years. The alternative of a 5/1 ARM loan allows buyers to get a lower fixed rate that changes annually after the first five years. As long as you sell your home and repay the loan within that time, you can avoid exposure to any potential increases in the adjustable rate. Based on Pennsylvania's current average for a 5/1 ARM rate, the monthly payment in our example would fall to $764 during the first five years.

Long-term homeowners may want a different solution that prioritizes the reduction of overall interest. For those who can afford higher monthly payments, the low interest rates on a 15-year mortgage are well-suited for that goal. A 15-year fixed-rate loan at the state average costs $1,194 per month due to the compressed amortization schedule, but just $54,912 in total interest.

In Pennsylvania, 30-year mortgages currently have an average rate of 4.64%. The current average rate for 15-year loans is 4.13%, and 5/1 adjustable-rate mortgages (ARM) average around 4.00%.

Loan typeAverage rateWeekly change3-month change
30-year fixed4.64%–0.02%–0.23%
15-year fixed4.13%–0.02%–0.24%
5/1 ARM4.00%+0.00%–0.08%
Rates for a $200,000 loan with 20% down payment

Locking in a mortgage rate can be tricky, especially if you think rates may change drastically before you close the deal on your new home. The many factors that affect rates make it a challenge to predict the precise behavior of mortgage rates. Our research on mortgage lender offers in the Keystone State gives you a better way to compare the many lender options you'll come across.

Currently, the best published rate for a 30-year mortgage in Pennsylvania is 4.13%. The lowest in-state rate for a 15-year home loan is 3.63%, while 5/1 ARM rates go as low as 3.13%.

While mortgage rate offers tend to be better for applicants who have a strong credit history and financial profile, other variables can also play a significant role. For instance, interest rates on all types of credit move in conjunction with certain index rates that are determined by market and government action. Having some familiarity with the current state of the economy helps ensure that you've chosen an appropriate time to look for mortgage rates.

The rates we track are based on an assumed home purchase price of $200,000 and a down payment of 20%. As a result, it's best to think of the following numbers as the minimum baseline for a competitive home loan offer in Pennsylvania. Higher loan amounts and smaller down payments will typically lead to higher rate quotes, so bear this in mind when you begin collecting quotes for your own purchase or refinance.

Given the recent activity of the Federal Reserve's Open Market Committee (FOMC), Pennsylvania's interest rates are less likely to rise in 2019 than many anticipated. The FOMC meets periodically to raise or lower the federal funds target rate. The federal funds rate is the rate that banks pay to borrow money—a cost that the banks then pass on in their pricing of consumer credit.

Line graph of average U.S. 30-year mortgage rates vs. effective federal funds rate since 2014

At the end of 2018, the FOMC voted to raise the target federal funds rate by 25 points, which moved it to a range of 2.25%-2.50%. While the general expectation was that additional rate hikes would follow soon, the FOMC surprisingly changed course in January. Currently, the Fed's official position is one of watching and waiting for more definitive information about the state of the economy.

For Pennsylvania's aspiring homeowners, this pause is a good chance to find more affordable mortgage options. While the supply of housing remains tight relative to the high demand, lower rates can only help buyers reduce costs or expand their purchasing power. Overall, home loan rates remain historically low compared to past decades.

While online mortgage lending is gaining in popularity, local banks are still the first place that many applicants think of when it's time to find a mortgage lender. We gathered mortgage rates from the most popular banks in Pennsylvania for a quick look at which institutions might offer better deals.

Column graph comparing 30-year mortgage rates at major Pennsylvania banks

It turned out that there's only a small difference in mortgage rates among the state's major banks, with about 27 basis points separating the highest and lowest rates. After considering the potential effects of individual credit score and debt-to-income ratio, we're left with little evidence to suggest that borrowers will consistently get lower rates from any one bank in Pennsylvania.

What does this mean for you as a borrower? Regardless of whether some lenders appear more affordable now, you should take the time to request mortgage quotes from a broad selection of providers. There's no substitute for comparison-shopping quotes specifically tailored to your situation, whether you do that online or by calling up individual banks. Just keep in mind that there are plenty of elements to compare beyond just the APR on a mortgage offer, such as closing costs and escrow requirements.

While mortgages in Pennsylvania and elsewhere are all tied to the ebb and flow of nationwide interest rates, we collected rate quotes from several of the state's biggest metropolitan areas to check whether local real estate markets have any effect on local home loan rates.

MSAAverage mortgage rateMedian home value
Philadelphia-Camden-Wilmington4.93%$264,582
Pittsburgh4.88%$161,519
Allentown-Bethlehem-Easton4.99%$226,465
Scranton--Wilkes-Barre--Hazleton4.93%$146,185
Harrisburg-Carlisle4.98%$196,382
Average rate is for a 30-year mortgage with a 20% down payment.

For the most part, mortgage rates will be similar for all Pennsylvanians wherever they're located in the state. Home shoppers should pay more attention to the contrasting real estate values that distinguish each city. Because your monthly mortgage costs will depend on both interest rate and loan balance, similar rates statewide don't necessarily mean that it costs the same to own a home in Pittsburgh as in Allentown.

Comments and Questions

Opinions, analyses, reviews, or recommendations expressed here are the author’s alone, and have not been reviewed or endorsed by the companies. We may be compensated through affiliate programs. For a full list of our advertisers, see our disclosure page.