Current Mortgage Refinance Rates Across States - June 20, 2025
Unfiltered, Unapologetic Advice on Mortgage Rates
It's June 18th, 2025, and we've got some interesting mortgage refinance rate insights to share with you. Remember, Investopedia took a day off for Juneteenth National Independence Day, so today's rates are a day behind.
The most affordable locations to refinance your mortgage right now include New York, California, Florida, Connecticut, Texas, Maryland, North Carolina, and Washington. These states are enjoying average refi rates ranging between 6.86% and 7.04%.
However, the hardest hit are West Virginia, Alaska, Hawaii, Nevada, Arkansas, Louisiana, Maine, Mississippi, South Dakota, and Vermont. These unfortunate states are enduring average refi rates between 7.13% and 7.17%.
The differences in mortgage refinance rates between states stem from various factors, including lender preferences, loan sizes, credit scores, and differing state regulations. That's why it's essential to shop around for the best mortgage deal, regardless of the loan type you're pursuing, and regularly compare rates.
National Mortgage Refinance Rate Averages
The 30-year refinance mortgage average took a modest two-day dip after a two-day climb, reaching 7.08% today. This drop is a welcome relief compared to the 7.32% peak recorded in May, a 10-month high.
It's intriguing to compare these figures with historical averages. Back in March, 30-year refinance rates reached an all-time low of 6.71% since 2025. Interestingly, last September, they plummeted to a two-year record low of 6.01%.
Watch Out for Deceitful Rates
Don't let attractive teaser rates mislead you! The rates we publish are not the teaser rates you might come across online. These teaser rates are selectively showcased as the most alluring offers but don't match the averages you see here. What you pay ultimately depends on factors like your credit score, income, and other aspects, so it may differ from the numbers detailed here.
Compare Current Mortgage Rates Today - June 20, 2025Compare and calculate various loan scenarios using our Mortgage Calculator.
Your monthly mortgage payment largely depends on variables such as home price, down payment, loan term, insurance, property taxes, and the interest rate on the loan - a factor heavily influenced by your credit score.
Why Do Mortgage Rates Rise and Fall?
Mortgage rates are a complex amalgamation of macroeconomic and industry factors, such as:
- Inflation: Inflation, the relentless rise in prices, plays a significant role in determining mortgage rates. When inflation heats up, lenders jack up mortgage rates to maintain profitability as the purchasing power of money erodes. High inflation invariably leads to higher mortgage rates[1][4].
- Federal Reserve Policies: The Federal Reserve (Fed) indirectly affects mortgage rates through its monetary policies, particularly by fine-tuning short-term interest rates like the federal funds rate. When the Fed hikes these rates to curb inflation or stabilize the economy, mortgage rates soar as well because banks' borrowing costs increase. Conversely, when the Fed reduces rates, mortgage rates typically decline[1][2][3][5].
- Financial Markets: Mortgage rates are closely linked to the performance of mortgage-backed securities (MBS) and U.S. Treasury bonds, especially the 10-year Treasury yield. Mortgage rates generally run about 2% higher than the 10-year Treasury yield to compensate investors for risk. Any changes in bond market yields directly impact mortgage rates[1][2].
- Term Premium and Prepayment Risk: Components like the term premium, representing the extra yield investors demand for holding longer-term securities, and prepayment risk, which is the risk that borrowers refinance or pay off their loans early, also influence mortgage rates. These elements can account for a substantial portion of mortgage rate fluctuations[4].
Advice for Today's Mortgage Shoppers
Since personal circumstances and varying factors influence individual mortgage rates, smart shoppers research and compare multiple offers from different lenders before making a decision. Don't forget that factors such as credit score, loan-to-value ratio, debt-to-income ratio, loan type, and loan amount can all have a significant impact on the rate you secure[1][2][5].
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The complex relationship between the myriad factors impacting mortgage rates means that they are constantly changing, making it vital for today's mortgage shoppers to stay informed and vigilant[1][2][4][5].
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