The Return of the 5%: Mortgage Rates Update

Reclaiming Your Purchasing Power in the Philadelphia Suburbs

We are finally moving away from the “sticker shock” of 7% and 8% interest rates. As of February 4, 2026, average interest rates on a 30-year fixed mortgage have settled around 5.96% to 6.3%. While not the “unicorn” rates of 2020, this is a massive improvement that is unleashing pent-up demand.

Think about it this way: a 1% drop in rates translates to a roughly $75 difference per month for every $100,000 borrowed. This stabilization is a key driver behind the projected 11% jump in closed sales for Greater Philadelphia.