20 Feb Mortgage Rates Hit a 3-Year Low Zone—But Contracts Slipped
Spring is getting closer, and this week’s theme is simple: rates are a little better, but inventory is still calling the shots. We’re seeing signals that affordability is improving, yet contract activity is still uneven—mainly because there just aren’t enough homes for the number of households that want to buy.
Below is a quick, practical roundup of what’s most likely to impact buyers, sellers, and homeowners in York & Lancaster County right now.
Purchase-only Rate Snapshot (today’s averages)
These are purchase averages (not refi), and real offers vary by credit, down payment, property type, points, and lender.
- 30-yr Conventional: 6.006%
- 30-yr Jumbo: 6.198%
- 30-yr FHA: 5.961%
- 30-yr VA: 5.653%
- 30-yr USDA: 5.848%
- 15-yr Conventional: 5.353%
Local takeaway: If you’re shopping, don’t just ask “what’s the rate?” Ask “what’s my payment at this price, and what’s the best lock strategy for my timeline?” The right plan can matter as much as the headline rate.
Weekly mortgage rates dipped to the lowest level in more than 3 years
Freddie Mac’s weekly survey showed the average 30-year fixed rate dropping to 6.01%, the lowest level since 2022. That’s helpful—but it hasn’t fully unlocked buyer activity yet, because prices and inventory are still the bigger constraint.
Local takeaway: If rates keep drifting near 6%, we typically see more buyers re-enter the market. That can mean more competition on the best homes. Preparation (financing + strategy) is the advantage.
Pending home sales fell in January (contracts signed), pointing to a slower start
Pending home sales (homes under contract) slipped 0.8% in January. The big message from the data: improving affordability alone doesn’t fix things when resale inventory is tight.
Local takeaway: For buyers, the “win” is being ready to move quickly on the right home while still protecting yourself with smart terms. For sellers, correctly priced homes with solid condition and clear disclosures still stand out.
Existing-home sales dropped sharply to start 2026
Existing-home sales fell 8.4% in January (to an annual pace of 3.91 million), while the median existing-home price was reported around $396,800. Inventory was reported around 1.22 million units, roughly 3.7 months of supply—still a tight national picture.
Local takeaway: National numbers don’t equal York/Lancaster—but the pattern is familiar: fewer homes for sale keeps prices supported, even when sales slow. If you’re selling, pricing and presentation still matter more than ever. If you’re buying, negotiating power often comes from inspection clarity + realistic timelines, not from “lowballing.”
Homebuilding showed a rebound in starts, but permits slipped
A recent construction update showed single-family starts rising, while permits for future construction dipped—a mixed signal. Builders continue to cite cost pressures (materials, labor, and land).
Local takeaway: More supply is the long-term solution for affordability—but it often arrives slowly. In the near term, expect the best move-in ready homes to keep getting attention first.
Pennsylvania’s Property Tax/Rent Rebate (PTRR) applications are open
This one is a practical homeowner (and renter) reminder. Pennsylvania is accepting PTRR applications for rebates on 2025 property taxes or rent paid. The program can be a meaningful help for eligible seniors, widows/widowers, and people with disabilities—and there’s a June 30, 2026 deadline.
Start here: https://pa.gov/ptrr
PA spotlight: 12th best state to raise a family (quality-of-life share)
A lighter (but still useful) share: PA REALTORS® highlighted a recent ranking naming Pennsylvania the 12th best state to raise a family. We like these items because they’re a simple reminder that “home” is more than the house—it’s schools, commutes, parks, community, and day-to-day life.
Local takeaway: If you’re relocating into York or Lancaster County, we can help you compare areas by lifestyle priorities (commute, neighborhood feel, nearby amenities) and match that with a smart home search plan.
Want a local game plan?
If you want help turning this week’s headlines into a personal plan (buying, selling, or both), we’ll connect you with a trusted local mortgage specialist and coordinate comps + loan options so you can move with confidence.
Susan & Kurt Johnston – REALTORS® – Iron Valley Real Estate of York County
Serving York & Lancaster Counties & the Surrounding Susquehanna Valley
Call/Text 717-965-7763 | Office (717) 316-8777
Email:
Website: https://johnstonhomes4u.com
Disclaimer: This update is for informational purposes only and isn’t financial, legal, or tax advice. Mortgage rates and program rules change. Always confirm details with your lender/tax professional.
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