Pennsylvania Mortgage and Refinance Rates

Current mortgage rates in Pennsylvania

As of Thursday, November 21, 2024, current interest rates in Pennsylvania are 6.38% for a 30-year fixed mortgage and 5.81% for a 15-year fixed mortgage.

Today’s elevated mortgage rates and home prices continue to make housing affordability a challenge for Pennsylvania homebuyers. While the state has seen home prices rise, Pittsburgh has seen home prices rise 22 percent year-over-year as of Feb. 2024, according to Redfin. 

While mortgage rates are difficult to predict, many economists expect them to remain well above their historical lows for the foreseeable future, but they may fall gradually throughout 2024.

Refinance rates in Pennsylvania

The rate increases of the past couple of years have made refinancing unlikely for many Pennsylvanians. However, rates may start trending downward over the next few years. For those who’ve gotten a mortgage recently, that may make refinancing enticing. 

While mortgage refinance rates have more than doubled since the pandemic, many Pennsylvania homeowners have more tappable equity now. With a cash-out mortgage refinance, you could take advantage of this asset to help further your financial goals.

Pennsylvania mortgage rate trends

While it's hard to predict mortgage rates, the current consensus is for rates to remain well above historical lows for the foreseeable future, including in Pennsylvania. Still, there’s hope that rates will gradually drop in 2024 and 2025.

National mortgage rates by loan type

Mortgage statistics for Pennsylvania

Pennsylvania offers comparatively affordable housing, even in the major metro areas of Philadelphia and Pittsburgh. Here are some statistics about mortgages and the housing market in The Keystone State:

• Average home value (as of Mar. 2024): $255,570 (Zillow)
• Homeownership rate (as of Q4 2023): 71.3% (U.S. Census Bureau)
• Homes with price drops (as of Feb. 2024): 23.1% (Redfin)
• Number of homes for sale (as of Feb. 2024): 30,558 (Redfin)

Mortgage options in Pennsylvania

If you’re looking to get a mortgage in Pennsylvania, there are several options:

• Pennsylvania 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 45 percent. If you make a down payment of less than 20 percent, you’ll need to pay private mortgage insurance (PMI) premiums, as well.
• Pennsylvania 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. 
• Pennsylvania VA loans: If you’re a veteran or active-duty member of the military, you might qualify for a mortgage guaranteed 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 ranges from 1.25 percent to 3.3 percent.

First-time homebuyer programs in Pennsylvania

The Pennsylvania Housing Finance Agency (PHFA), the state’s housing finance authority, helps eligible homebuyers obtain more affordable loans from various lenders. You might qualify for:

• The HFA Preferred (Lo MI) loan is a conventional loan with less expensive private mortgage insurance (PMI). The program is open to all types of homebuyers with no purchase price limits, but you’ll need to put at least $1,000 of your own money toward the down payment.
• The Keystone Home loan program serves first-time homebuyers, discharged veterans of the armed forces and buyers of homes in targeted Pennsylvania counties for conventional mortgages, VA loans, FHA loans or USDA loans. Each type of loan has different requirements.
• The Keystone Government loan is either an FHA loan, VA loan or USDA loan. You don’t have to be a first-time homebuyer to apply for this program.
• The Keystone Flex mortgage with K-FIT loan combines the Keystone Home loan with a K-FIT (Keystone Forgivable in Ten Years) loan for down payment and closing cost assistance. The K-FIT loan provides the homebuyer with 5 percent of the purchase price or appraised value (whichever is lower) in cash. The loan is forgivable over 10 years, with 10 percent forgiven annually.
• The Keystone Flex Purchase and Improvement mortgage with a K-FIT loan is the same as the above program, except that it’s for buyers purchasing a home that needs renovations. They can receive up to $30,000 over the purchase price to renovate the home.

How to find the best mortgage rate in Pennsylvania for you

• 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.

Learn more about how to get a mortgage.

Additional Pennsylvania mortgage resources 

Meet our Bankrate experts

Written by: Jeff Ostrowski, Principal Reporter, Mortgages

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

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