Pa. among states where mortgage rates are falling fastest

Reatlor.com reports how, on a state-level, mortgage rates fell recently, providing some relief to a number of homebuyers across the country.

Pennsylvania was one such state in which this occurred.

WalletHub conducted and published a study detailing “States Where Mortgage Interest Rates are Decreasing the Most.” Pennsylvania ranked on the “most” side of the spectrum in the 22nd overall ranking.

This study was created after WalletHub researchers looked at the website’s proprietary user data on mortgage interest rates from Q1 2025 to Q2 2025. The difference between the two determined which state fell where.

When all was said and done, Alabama ranked in first as the state where mortgage interest rates fell the most.

“Alabama had the largest decrease in the average mortgage interest rate between Q1 2025 and Q2 2025, at around 16.7 percent,” the study elaborates. “With this significant decrease, the average mortgage rate in Alabama dropped to only 4.8 percent in Q2 2025, making it the 10th-cheapest state.

“In addition, Alabama already ranks 12th among the states where mortgage delinquency is decreasing the most. On the other hand, it ranks 21st among the states adding the most mortgage debt, suggesting that while homeowners are catching up on payments, many are also taking on new financial risks.”

Vermont, on the flip side of things, ranked in last as the state where these rates are decreasing the least.

“It’s a difficult time to buy a house, given that home prices have risen astronomically over the past few years and housing shortages make it hard to find the right place even if you have the money,” said WalletHub analyst Chip Lupo. “The upside is that consumers’ home-buying struggles are alleviated by the fact that the average mortgage interest rate decreased in all states between Q1 2025 and Q2 2025.

“Although interest rates are still down a bit from the highs we saw two years ago, they’re a far cry from the historic lows during the pandemic.”