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Home Mortgage Rates in Delaware

Delaware Bay Fishing Pier.

Delaware was the first state admitted to the union when it was admitted on December 7, 1787.  Next to Rhode Island, Delaware is the second smallest state in the union with an area of just under 2,500 square miles.  While the state has just the 45th largest population, the state is quite dense and has the 6th highest population density. 

Overall, the state of Delaware has a very healthy economy.  The state has the 9th highest per capita income in the state and is the headquarters to over 50% of the country’s 500 largest companies.  Delaware is a very popular attraction to large companies because the state offers a tax haven that is not available in other states. 

Delaware Home Prices

Like most states located in the Northeastern party of the country, the median housing price in Delaware is higher than the overall national average.  Delaware’s average listing price and median sales price are comparable to other states located in the Mid Atlantic and North Atlantic including New Jersey, Connecticut, Maryland, and Virginia.

One reason why Delaware’s home prices are so high is the fact that much of the land is located on the sea.  Oceanfront homes almost always sell more than homes that are located inland.  Also, the fact that Delaware is such a densely populated state drives up the demand for housing and pushes up real estate prices. 

Delaware home prices have declined over the past few years; however they have not fallen at nearly the same pace as other areas of the country.  This is partially due to a low rate of foreclosure.  In 2009, Delaware ranked 42nd in the country will only 1 in every 128 homes being foreclosed.

Metropolitan Areas

DE Rank US Rank Geography 2016 Pop 2010 Pop Change % △
1 7 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD Metro Area 6,070,500 5,965,343 105,157 1.76%
2 135 Salisbury, MD-DE Metro Area 400,200 373,802 26,398 7.06%
3 241 Dover 174,827 162,310 12,517 7.71%

Popular Places to Live in Delaware

Overall, with just under 900,000 residents Delaware is one of the least populated states in the country.  The most populated city and one of the most popular cities in the state is Wilmington.  Wilmington, DE has an estimated population of around 75,000 residents.  The city was first incorporated in the year 1731, making it one of the oldest chartered cities in the country.  There is much demand for housing in Wilmington as there many major companies that are headquartered in the city.  Many major credit card issuers including Chase Card Services, Bank of America, and Barclays Bank of Delaware are all headquartered in the city. 

Wilmington, Delaware Waterfront.

One of the most popular places to live in Wilmington is along the Wilmington Riverfront.  Wilmington sits on the Christina River and in recent years much development has taken place in that area.  Justison Landing, which is located near the river, is the newest residential development located in Wilmington.  The Wilmington Riverfront also houses many outlet shops and restaurants. 

Delaware Capital Building.

Another popular city in Delaware is Dover.  Dover, DE has been the state capital of Delaware since 1777.  The city has a population of around 35,000, but the metro area exceeds 150,000 residents.  Housing is always high in demand in Dover because of its strong economy.  The largest employer in Delaware is the state’s government, which is largely located in or around Dover. 

Due to the low cost of living, the Dover metro area is one of the fastest growing areas in the state.  Outside of the state government, many Dover area residents are employed by the US military.  The Dover Airforce Base employs many military personnel as well as civilians who support the base.  Also, Proctor & Gamble and Kraft Foods each have major manufacturing facilities in the area.

Christiana Hospital in Newark, Delaware.

Newark is close to the Maryland border of the state and has had an influential role in academics as the home of the University of Delaware.

Delaware Census Data

According to the United States Census an estimated 952,065 people live in the state of Delaware. The state has 1948.54 mi² of land area, which gave it a population density of 488.6 per mi². Here is a list of cities, towns, villages & Census Designated Places with their estimated population as of June 2016 & the 2010 United States Census. For Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.

All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.

Rank Geography County 2016 Pop 2010 Pop Change % △ Land mi² Pop Den mi²
1 Wilmington New Castle 71,442 70,851 591 0.83% 10.9 6,554.31
2 Dover Kent 37,786 36,047 1,739 4.82% 23.15 1,632.22
3 Newark New Castle 33,398 31,454 1,944 6.18% 9.19 3,634.17
4 Middletown New Castle 20,876 18,871 2,005 10.62% 11.61 1,798.11
Bear CDP New Castle 19,886 19,371 515 2.66% 5.71 3,482.66
Glasgow CDP New Castle 14,640 14,303 337 2.36% 9.93 1,474.32
Brookside CDP New Castle 13,743 14,353 -610 -4.25% 3.95 3,479.24
Hockessin CDP New Castle 13,230 13,527 -297 -2.20% 10.04 1,317.73
5 Smyrna Kent & New Castle 11,371 10,023 1,348 13.45% 5.93 1,917.54
6 Milford Sussex & Kent 10,979 9,559 1,420 14.86% 9.45 1,161.80
Pike Creek Valley CDP New Castle 10,672 11,217 -545 -4.86% 2.58 4,136.43
Claymont CDP New Castle 9,060 8,253 807 9.78% 2.15 4,213.95
Pike Creek CDP New Castle 8,463 7,898 565 7.15% 2.76 3,066.30
Wilmington Manor CDP New Castle 7,912 7,889 23 0.29% 1.55 5,104.52
7 Seaford Sussex 7,736 6,928 808 11.66% 5.21 1,484.84
North Star CDP New Castle 7,596 7,980 -384 -4.81% 6.8 1,117.06
8 Georgetown Sussex 7,206 6,422 784 12.21% 5.04 1,429.76
Edgemoor CDP New Castle 6,257 5,677 580 10.22% 1.87 3,345.99
9 Elsmere New Castle 6,106 6,131 -25 -0.41% 1.01 6,045.54
10 New Castle New Castle 5,357 5,285 72 1.36% 3.4 1,575.59
11 Millsboro Sussex 4,293 3,877 416 10.73% 3.71 1,157.14
12 Laurel Sussex 4,160 3,708 452 12.19% 2.89 1,439.45
Rising Sun-Lebanon CDP Kent 3,970 3,391 579 17.07% 3.39 1,171.09
Highland Acres CDP Kent 3,966 3,459 507 14.66% 1.5 2,644.00
13 Harrington Kent 3,679 3,562 117 3.28% 2.75 1,337.82
14 Camden Kent 3,489 3,464 25 0.72% 3.7 942.97
Dover Base Housing CDP Kent 3,417 3,450 -33 -0.96% 0.69 4,952.17
15 Clayton Kent & New Castle 3,157 2,918 239 8.19% 1.84 1,715.76
16 Lewes Sussex 3,074 2,747 327 11.90% 3.8 808.95
17 Milton Sussex 2,879 2,576 303 11.76% 1.8 1,599.44
Riverview CDP Kent 2,863 2,456 407 16.57% 3.61 793.07
18 Selbyville Sussex 2,421 2,167 254 11.72% 3.39 714.16
Greenville CDP New Castle 2,378 2,326 52 2.24% 2.74 867.88
Long Neck CDP Sussex 2,359 1,980 379 19.14% 2.58 914.34
19 Townsend New Castle 2,313 2,049 264 12.88% 1.05 2,202.86
20 Bridgeville Sussex 2,302 2,048 254 12.40% 4.65 495.05
Kent Acres CDP Kent 2,283 1,890 393 20.79% 0.84 2,717.86
21 Ocean View Sussex 2,076 1,882 194 10.31% 2.45 847.35
Woodside East CDP Kent 2,027 2,316 -289 -12.48% 1.7 1,192.35
22 Delmar Sussex 1,765 1,597 168 10.52% 1.77 997.18
23 Delaware City New Castle 1,742 1,695 47 2.77% 1.23 1,416.26
Rodney Village CDP Kent 1,586 1,487 99 6.66% 0.59 2,688.14
24 Rehoboth Beach Sussex 1,488 1,327 161 12.13% 1.18 1,261.02
25 Wyoming Kent 1,486 1,313 173 13.18% 1.06 1,401.89
26 Cheswold Kent 1,425 1,380 45 3.26% 1.29 1,104.65
27 Felton Kent 1,408 1,298 110 8.47% 0.82 1,717.07
28 Blades Sussex 1,380 1,241 139 11.20% 0.56 2,464.29
29 Bethany Beach Sussex 1,194 1,060 134 12.64% 1.15 1,038.26
30 Bellefonte New Castle 1,178 1,193 -15 -1.26% 0.18 6,544.44
St. Georges CDP New Castle 1,141 1 1,141.00
31 Greenwood Sussex 1,085 973 112 11.51% 0.72 1,506.94
32 Newport New Castle 1,050 1,055 -5 -0.47% 0.44 2,386.36
33 Frankford Sussex 951 847 104 12.28% 0.73 1,302.74
34 Dagsboro Sussex 878 805 73 9.07% 1.36 645.59
35 Frederica Kent 828 774 54 6.98% 1.92 431.25
36 Millville Sussex 602 544 58 10.66% 2.5 240.8
37 South Bethany Sussex 508 449 59 13.14% 0.51 996.08
38 Arden New Castle 450 439 11 2.51% 0.26 1,730.77
39 Fenwick Island Sussex 426 379 47 12.40% 0.33 1,290.91
40 Ellendale Sussex 423 381 42 11.02% 0.44 961.36
41 Houston Kent 393 374 19 5.08% 0.33 1,190.91
42 Dewey Beach Sussex 379 341 38 11.14% 0.33 1,148.48
43 Odessa New Castle 372 364 8 2.20% 0.51 729.41
44 Bowers Kent 360 335 25 7.46% 0.29 1,241.38
45 Ardentown New Castle 273 264 9 3.41% 0.1 2,730.00
46 Kenton Kent 265 261 4 1.53% 0.19 1,394.74
47 Ardencroft New Castle 237 231 6 2.60% 0.16 1,481.25
48 Magnolia Kent 235 225 10 4.44% 0.12 1,958.33
49 Little Creek Kent 234 224 10 4.46% 0.14 1,671.43
50 Slaughter Beach Sussex 233 207 26 12.56% 1.36 171.32
51 Leipsic Kent 196 183 13 7.10% 0.29 675.86
52 Woodside Kent 196 181 15 8.29% 0.16 1,225.00
53 Bethel Sussex 192 171 21 12.28% 0.4 480
54 Viola Kent 171 157 14 8.92% 0.18 950
55 Henlopen Acres Sussex 138 122 16 13.11% 0.26 530.77
56 Farmington Kent 118 110 8 7.27% 0.08 1,475.00
57 Hartly Kent 71 74 -3 -4.05% 0.06 1,183.33

Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.

Delaware Mortgages

As of 2017 the conforming loan limit across the United States is set to $424,100, with a ceiling of 150% that amount in areas where median home values are higher.

In general, mortgage rates in the state of Delaware compared to the national average varies by mortgage product.  For a typical 30 year mortgage, as of our publication date in Feb. 2010, interest ratse in Delaware are roughly between 10 and 15 basis points higher than the national average.  This means that on a typical $300,000 mortgage, a person in Delaware will spend $15 more per month than someone who receives the average national interest rate.

They typical interest rate on a 5/1 adjustable rate mortgage in Delaware is also slightly higher than the national average.  ARM rates in Delaware tend to be about 5 basis points higher than the national average. 

While the 30 year mortgage rates and adjustable mortgage rates are higher than average in Delaware, rates on a 15 year mortgage are actually slightly lower.  The average 15 year mortgage rate in Delaware is normally 2 or 3 basis points lower than the national average.  

Delaware offers the same mortgage products that are popular across the country - 30 year fixed, 15 year fixed, 5/1 ARM, etc.  All mortgages in Delaware are considered full recourse, which means in the event of default, and foreclosure the lender could attempt to recoup all or a portion of the money they lost on the transaction. 

Natural Disasters

Homeowner's insurance policies typically cover financial damages from most natural disasters other than flooding & earthquakes. The state has a very low risk of earthquakes, wildfires, tornadoes, & hail.

Flooding is covered below.

Flood Insurance

Homeowner's insurance policies typically do not cover flooding.

Kent & New Castle counties have a low flooding risk, while Sussex county has a very high flooding risk.

New Castle county has a very low risk of hurricane storm surges, while the risk is moderae in Kent & Sussex counties.

Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.

The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners don€™t incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the government€™s costs in the next disaster.

Typically, homes built after 2002, when building code regulations tightened, are subject to lower insurance rates than older homes. On the other hand, homes without hurricane straps, with roofs that do not meet current standards for wind, with older plumbing or with outdated electrical systems may be difficult €“ or very expensive €“ to insure.

Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.

Delaware Foreclosure Process

The state of Delaware follows a judicial foreclosure process.  Under a judicial foreclosure process a complaint is formally filed to a court and a judge oversees and supervises the entire foreclosure process.  Under a judicial process, the homeowner has the right to pay back the loan and become current on payments until the court judgment orders the sale of the property. 

A judicial foreclosure process is normally quite time consuming which allows the homeowner plenty of time to bring their loan current.  However, while the home is going through the judicial process a lis pendens is placed on the home which makes it very difficult to sell.  A lis pendens is a notice that is placed on the home which tells a potential purchaser that the property is subject to pending litigation. 

In Delaware, a homeowner does not have a right of redemption.  The right of redemption gives a homeowner the right to purchase the foreclosed property back from the person who purchased the home through the foreclosure process.  While they do not have the right of redemption, the original homeowner does have the right to contest the sale of the property in court.

In the state of Delaware, a lender has the right to recoup any deficiency.  The deficiency is the amount of loan balance that is still outstanding after the home is sold.  The lender can take any number of steps or methods to collect the balance that is outstanding. Because of the requirement to repay deficiency and the lack of right of redemption, the foreclosure process is quite disadvantageous to homeowners in Delaware when compared to other states.