CHESTER COUNTY, PA — Homebuyers across Chester County are spending months searching for the right house, only to risk overpaying for it by taking the first mortgage offer they receive. New analysis shows that even small differences in interest rates can significantly expand the number of homes within reach in a market where affordability remains tight.
Nearly seven in ten mortgage shoppers submit just one loan application, according to Zillow’s Consumer Housing Trends Report. That lack of comparison shopping can translate into higher monthly payments and fewer viable listings, even for buyers who otherwise qualify.
The financial impact is not theoretical. On a typical U.S. home priced around $360,000, a buyer financing at 6.24 percent—the average 30-year fixed rate in November—would pay about $2,345 per month. At 5.74 percent, a rate commonly seen by borrowers who compare multiple lenders, the monthly payment drops to roughly $2,253. That difference adds up to about $1,100 in annual savings.
Savings of that size matter in high-demand markets like Chester County, where inventory is limited and price points often push the edge of what middle-income households can afford. Nationally, Zillow found that a $1,100 annual payment reduction would have made roughly 22,000 additional homes affordable for a median-income household.
“Buyers often spend months finding the right home, but only minutes comparing lenders,” said Kara Ng, senior economist at Zillow Home Loans. She said small rate differences can meaningfully lower monthly payments and widen the pool of available homes at a time when affordability remains strained.
Mortgage pricing can vary widely because lenders weigh credit scores, loan structures, and market conditions differently. A Zillow analysis previously found spreads of 90 to 130 basis points between the best and worst mortgage offers for similar borrowers. Freddie Mac has also reported that rates can swing by about 50 basis points depending on which lenders a buyer contacts.
For Chester County buyers competing in multiple-offer situations, those differences can determine whether a home is comfortably affordable or just out of reach. Lower payments can also strengthen a buyer’s position by freeing up cash for taxes, insurance, or future maintenance.
While affordability pressures have eased slightly in recent months due to lower mortgage rates and more frequent seller concessions, housing costs remain elevated. Analysts say rate shopping remains one of the few levers buyers can still control.
The takeaway for local buyers is straightforward: comparing lenders may take extra time, but it can translate directly into lower payments and more homes to choose from in one of southeastern Pennsylvania’s most competitive housing markets.
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