We continue to see an increase in activity for Pennsylvania homeowners applying for home equity loans and credit lines rather than refinancing in 2024.
Home values in the state are checking in at 12% higher than last year, beating the national average of only a one percent gain.
Average home prices also jumped in the state. The average price of a home climbed more than $20,000 from $218,600 during the first quarter to $241,600 during the second.
Pennsylvania’s property values ahead of the pack.
Rising interest rates may have contributed to a drop in home values in Pennsylvania. Home price dropped as interest rates climbed during the first quarter. Second quarter showing a different story. As interest rates climbed then leveled off, PA home prices skyrocketed and sales improved. Consider a 2nd mortgage or HELOC loan.
“The most important development in the state’s single family home market last quarter (2006 Q2) was a significant drop in home affordability, says economist Jacob De Rooy, PhD. “There were four changes in the marketplace. First, mortgage interest rates moved upward. Current home equity loan rates paid by recent home buyers are 80 basis points higher than they were one year ago.
That made the servicing of mortgages much more expensive. Second, since the median income of buyers did not rise, mortgage servicing as a percentage of income increased. Third, Pennsylvania lenders became more cautious as they raised borrowers’ qualifying income. Fourth, the median price of purchased homes rose $21,000 during the first quarter.”