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• Mortgage rates in Pittsburgh are influenced by a variety of economic and personal financial factors.
• Fixed-rate mortgages give you peace of mind with steady monthly payments.
• The better your credit score and down payment, the better your interest rate.
• The good news is that today’s rates are still well below the historical average.
• First-time homebuyers can take advantage of assistance programs to help with the down payment and closing costs.
• Understanding how interest rates affect your buying power is key to saving money on interest.
Introduction to Mortgage Refinance Rates
Welcome to our comprehensive guide on mortgage interest rates, tailored specifically for Pittsburgh. We’ve designed this article to help you understand how mortgage rates are determined in this region and, importantly, how you can secure the lowest available rate. We’ll explore the various factors that influence rates and offer practical tips and advice to help you navigate the mortgage process from start to finish. The first thing anyone seeking a mortgage should understand is how lenders set their rates to begin with.
First-time homebuyer programs usually consider anyone who hasn’t owned a home in the previous three years to be a “first-timer.” If you think you might qualify as a first-time homebuyer, you could enjoy special benefits such as lower down payment minimums, grants, and closing cost assistance.
Where Mortgage Rates Come From
Mortgage rates in Pennsylvania are influenced by a number of factors, including the state of the local and national economies and the bond market. The 10-year U.S. Treasury bond has long been a good indicator of where mortgage rates are headed, and you might find yourself paying closer attention to bond prices than you have in the past. If the yield on the 10-year U.S. Treasury note is moving up, mortgage rates probably are too. But if it’s moving down, mortgage rates could be on the way down as well.
But economic factors are only part of the interest rate puzzle. Your own personal financial statistics add another layer of complexity as a lender determines what rate to offer you, personally. Lenders will examine the following:
• Your credit score A conventional mortgage (one not backed by a government agency) typically requires a credit score of 620 or higher. The higher the score, the lower the rate you’ll likely obtain.
• Your down payment amount Making a larger down payment can result in a lower interest rate because lenders perceive a lower default risk.
• Your debt-to-income (DTI) ratio In general, mortgage lenders like to see a DTI ratio of no more than 36%, though that is not necessarily the maximum.
Discover how your debt level may impact your mortgage.
Try SoFi’s debt-to-income calculator to calculate your DTI number.
Discover how your debt level may impact your mortgage.
Try SoFi’s debt-to-income calculator to calculate your DTI number.
How Interest Rates Affect Home Affordability
In Pittsburgh, mortgage rates can significantly affect the affordability of a home for buyers. Even a small change in the mortgage rate can have a big impact over the long term. Consider a $400,000 loan at 6.50% with a 30-year term. It would carry a monthly payment of $2,528. If the rate increases to 7.00%, the monthly payment increases to $2,661. Over the life of the loan, the borrower with the lower rate ultimately saves nearly $48,000 in interest payments. Below are more examples of costs on a $400,000 loan.
Interest Rate
Loan Term
Monthly Payment
Total Interest
6.00%
30-year
$2,398
$463,353
6.00%
15-year
$3,375
$207,577
7.00%
30-year
$2,661
$558,036
7.00%
15-year
$3.595
$247,156
Pittsburgh Mortgage Rate Trends
Historical U.S. Mortgage Rates
Having a sense of the history of mortgage rates can provide perspective on current rates for those looking to buy a home in Pittsburgh. While rates have gone up in the last few years, they are still relatively low compared to significantly higher rates of, say, the 1980s. The graph shows a half-century of average mortgage rates. The chart shows how Pittsburgh has tended to stack up against national averages.
Year
Pittsburgh Rate
U.S. Rate
2000
8.02
8.14
2001
6.98
7.03
2002
6.51
6.62
2003
5.81
5.83
2004
5.85
5.95
2005
5.98
6.00
2006
6.22
6.60
2007
6.10
6.44
2008
5.87
6.09
2009
5.05
5.06
2010
4.68
4.84
2011
4.48
4.66
2012
3.61
3.74
2013
3.94
3.92
2014
4.20
4.24
2015
3.97
3.91
2016
3.76
3.72
2017
4.07
4.03
2018
4.57
4.57
Source: Federal House Finance Agency
Types of Mortgages Available in Pittsburgh
Pittsburgh offers ever type of mortgage loan a prospective homebuyer might need. Each type of mortgage has its own benefits and requirements, so it’s important to compare your options and find the right fit for your financial situation and homeownership goals. These are the more popular types you’ll encounter.
Fixed-Rate Mortgage
Fixed-rate mortgages are a popular choice across the U.S. because they offer stability. With this type of mortgage, the interest rate on your loan remains the same throughout the entire loan term, which could be anywhere from 10 to 40 years. This means the monthly payment stays the same as well. Fixed-rate mortgages are especially beneficial if interest rates are rising because they protect you against future interest rate increases.
Adjustable-Rate Mortgage (ARM)
An adjustable-rate mortgage (ARM) could be the savvy choice for some home purchasers in Pittsburgh. ARMs tend to kick off with a lower interest rate than their fixed-rate counterparts. After an introductory period, however, rates can rise or fall according to the market. ARMs are often popular for those who think they will move after only a few years (before the introductory rate period ends). If you go with an ARM, knowing how much the rate adjustment might be (there are caps) is key to preventing unexpected financial jolts.
FHA Loan
FHA loans, backed by the Federal Housing Administration, are a popular choice for those who are buying their first home in Pittsburgh. These loans typically have more lenient eligibility requirements. Those with a minimum credit score of 580, for example, can make a down payment as low as 3.5%. And even people with lower credit scores of 500-579 can qualify for a loan if they put down 10%. This makes homeownership more accessible, especially for those with limited financial resources.
VA Loan
VA loans are for eligible active-duty military members, veterans, reservists, National Guard members, and surviving spouses. One of their standout features is the lack of a down payment requirement, making them a compelling choice for those with limited savings. Moreover, VA loans do not mandate mortgage insurance, which can translate to substantial savings over the loan’s lifetime.
Jumbo Loan
In most areas of Pennsylvania, the conventional mortgage loan limit is $806,500 for a single-family home. If you’re eyeing a property that will require a mortgage in excess of this amount, you’ll need a jumbo loan to make it yours. These specialized loans can come with stricter qualification criteria, but they’re still a great option for purchasing a dream home in Pittsburgh.
Compare current home interest rates by state and find a mortgage rate that suits your financial goals.
Select a state to view current rates:
Should You Wait for Interest Rates to Take a Dip?
If you’re considering purchasing in Pittsburgh — and especially if you’re a first-time buyer — you might be wondering if waiting for interest rates to drop is the right move. Current predictions suggest that interest rates are expected to remain relatively stable through 2025, ending the year at 6.30%. Rates in 2026 aren’t expected to change significantly, either, although financial unrest could change that outlook. Remember, though, that if you buy now and rates do fall, you can always consider a mortgage refinance to take advantage of the lower rate.
Pittsburgh made SoFi’s list of best affordable places in the U.S. so it’s no surprise that it has a moderate cost of living. The average sale price of a home in Pittsburgh is $242,000 and while it has risen about 6% over the last year, it is still well below the U.S. average. These factors come together to paint a picture of Pittsburgh as an appealing choice for those considering a fresh start in the area. Here’s how Pittsburgh compares to other Pennsylvania cities on a cost-of-living index where 100 equals the average cost of living in the U.S.
City
Cost of Living
Allentown
102.2
Philadelphia
103.3
Pittsburgh
106.3
Scranton
90.9
Wayne County
87.0
Wilkes-Barre
89.2
Get Your Best Possible Rate in Pittsburgh
To obtain the most favorable mortgage rate available to you in Pittsburgh, it’s essential to focus on two key factors: your credit score and your debt-to-income (DTI) ratio. A higher credit score and a DTI under 36% can translate to more attractive interest rates from lenders. Step one? Check your credit report and make sure it doesn’t contain any errors. Then focus on paying every bill on time. As for your DTI, to the extent you are able, pay down debts, such as credit-card debt, before applying for a loan.
Boosting your down payment, maintaining a stable income, and having sufficient assets can further bolster your application. It’s wise to go through the mortgage preapproval process with a lender and to explore the array of mortgage options, including fixed-rate and government-backed loans, which often come with more competitive rates.
Helpful Tools & Calculators
Online tools can be a lifesaver during the home-buying process. You can figure out your budget, see how different interest rates affect your payments, and more. These are a few of our favorite calculators.
Using the free calculators is for informational purposes only, does not constitute an offer to receive a loan, and will not solicit a loan offer. Any payments shown depend on the accuracy of the information provided.
How to Evaluate Loan Offers in Pittsburgh
Given how important a competitive mortgage rate is to your financial well-being, you’ll want to spend some time comparing loan offers in Pittsburgh. Once you’ve gotten interest rate numbers and fee information from several lenders, do a side-by-side comparison. Don’t just look at interest rates — focus on the annual percentage rate (APR), which encompasses fees, closing costs, and discount points. Once you have zeroed in on a loan that is attractive to you, you can usually lock in the rate for up to 90 days, providing peace of mind in a potentially volatile market. (Lenders do tend to charge a fee for a rate lock.)
Pittsburgh Mortgage Resources
Pittsburgh offers several programs to aid homebuyers, especially those stepping into the market for the first time or with limited financial means. The Pennsylvania Housing Finance Agency (PHFA) is your go-to, with offerings like the Keystone Advantage Assistance Loan program and the HOMEStead Down Payment and Closing Cost Assistance Loan. Down payment assistance programs and loans with forgiving terms can significantly ease the financial load of purchasing a home. And don’t forget to explore the city and county programs for added support.
Closing Costs in Pittsburgh
If you’re purchasing a home in Pittsburgh, you can anticipate closing costs to range from 2% to 5% of the loan value. These costs can fluctuate based on a variety of factors, including property value and location. Common closing costs include loan origination fees, appraisal fees, and title insurance. To keep these expenses in check, it’s wise to shop around. By understanding the breakdown of closing costs, you can budget more effectively and avoid unwelcome surprises.
The Takeaway
The mortgage market in Pittsburgh is ripe with possibilities, waiting for you to make the right move. By keeping your finger on the pulse of current mortgage rates in Pittsburgh and delving into assistance programs, if needed, you can make savvy decisions that will bring you closer to your dream of owning a home in the Steel City.
Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.
While it’s tough to pinpoint the future where mortgage rates are concerned, the forecast through the end of 2025 is that rates will not change dramatically but rather will end the year around 6.30%.
Will mortgage rates ever go back to normal?
What is “normal” for mortgage rates is going to vary for each person. Some homebuyers may remember the double-digit rates of the 1980s, and others may only remember the dramatic dip in rates that happened around 2021. Rather than focus on what’s normal, watch economic factors, such as inflation, bond prices, and housing market conditions. This will help you make strategic decisions about when to lock in your best rate.
Will Pittsburgh home prices ever decrease?
Pittsburgh home prices have risen a bit over the last year, but for the last five years or so, they have been up, down, then up again. So if that pattern continues, they may drop a bit. One leading indicator of home prices is population, and over the last couple decades, Pittsburgh has had a net loss of residents, with people moving south to North and South Carolina and Florida. If this trend continues, there could be a softening market for housing in the city.
How do you secure a mortgage rate?
Locking in a mortgage rate typically secures the rate for up to 90 days and is often a smart move. You can easily do this by reaching out to the lender that offers you the best overall rate and terms. Sometimes there is a fee involved.
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¹FHA loans are subject to unique terms and conditions established by FHA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. FHA loans require an Upfront Mortgage Insurance Premium (UFMIP), which may be financed or paid at closing, in addition to monthly Mortgage Insurance Premiums (MIP). Maximum loan amounts vary by county. The minimum FHA mortgage down payment is 3.5% for those who qualify financially for a primary purchase. SoFi is not affiliated with any government agency.
†Veterans, Service members, and members of the National Guard or Reserve may be eligible for a loan guaranteed by the U.S. Department of Veterans Affairs. VA loans are subject to unique terms and conditions established by VA and SoFi. Ask your SoFi loan officer for details about eligibility, documentation, and other requirements. VA loans typically require a one-time funding fee except as may be exempted by VA guidelines. The fee may be financed or paid at closing. The amount of the fee depends on the type of loan, the total amount of the loan, and, depending on loan type, prior use of VA eligibility and down payment amount. The VA funding fee is typically non-refundable. SoFi is not affiliated with any government agency.
*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
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