Current Mortgage Rates in PA for the Past 30 Years… On this article, I get to review current Pennsylvania mortgage interest rates. Compare conventional (fixed and adjustable rates), FHA, VA home loans.
Mortgage Rates in PA
Currently, the best published rate for a 30-year mortgage in Pennsylvania is 3.25%. The lowest in-state rate for a 15-year home loan is 2.75%, while 5/1 ARM rates go as low as 3.00%.
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 PA. 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.
Current Mortgage Rates in PA
Avg. PA Rate
30-Year 5/1 ARM
30-Year 3/1 ARM
30-Year 7/1 ARM
30-Year 10/1 ARM
Non-Conventional Mortgage Rates in PA
Avg. PA Rate
FHA 30-Year Fixed
FHA 15-Year Fixed
VA 30-Year Fixed
VA 15-Year Fixed
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.
Average mortgage rate
Median home value
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 4.43% for a 30-year fixed-rate mortgage, this homebuyer faces a monthly payment of at least $805 and total interest of up to $129,460.
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 $741 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 $1,147 per month due to the compressed amortization schedule, but just $46,453 in total interest.