Lowest Mortgage Rates Across the States: Listed - July 23, 2025
Mortgage Rates Fluctuate Across U.S. States
Mortgage rates in the United States have been on a rollercoaster ride over the past few years, with significant shifts influenced by various factors. As of late June 2025, the average 30-year mortgage rate stands at 6.8%, up from a two-year low of 5.89% seen in September 2024.
Last week, the rate peaked at 6.91%, marking a high since mid-June. However, just a few months ago, in March 2025, rates were at their lowest average for the year, around 6.50%. And who can forget May 2025, when rates spiked to 7.15%, a one-year high.
The states with the lowest 30-year new purchase mortgage rates as of today include New York, Colorado, Washington, California, North Carolina, Tennessee, Florida, New Jersey, and Massachusetts. On the other hand, the states with the highest rates are West Virginia, Alaska, Washington D.C., South Dakota, New Mexico, North Dakota, Oklahoma, Rhode Island, and Wyoming.
These variations in mortgage rates across states can be influenced by several key factors. Lender presence and competition play a significant role. States with more lenders vying for business often have lower mortgage rates due to competitive pricing.
Different states also have varying laws and regulations governing the mortgage industry, which can alter lenders' operational costs and risks, thereby affecting the mortgage rates they offer to consumers.
States with higher average credit scores typically see slightly lower mortgage rates because lenders perceive less risk of default in these areas. The typical loan amount requested in a state can also influence mortgage rates, with larger loan sizes sometimes carrying different rates depending on lender policies.
National factors such as inflation expectations, the federal budget deficit, and Federal Reserve policies also influence overall mortgage market conditions. For example, the Fed's actions on the federal funds rate indirectly impact mortgage rates by affecting the broader interest rate environment, though the Fed does not set mortgage rates directly.
Shopping around for a mortgage is essential as rates can vary significantly from lender to lender. Don't just settle for the first rate you see; get quotes from multiple lenders to see who can offer you the best deal. A mortgage broker can help you compare rates from multiple lenders and guide you through the mortgage process.
Experts project that rates could potentially fall to 5% by 2028, depending on the Fed actually following through on the rumored rate cuts. So, it's important to stay informed and keep an eye on the market trends to secure the best deal.
References: [1] Federal Reserve Bank of St. Louis. (n.d.). Mortgage rates. Retrieved from https://fred.stlouisfed.org/series/MBS30115US [2] Consumer Financial Protection Bureau. (2015). Mortgage Rates: What Affects Them and How They Vary. Retrieved from https://files.consumerfinance.gov/f/201509_cfpb_mortgage-rates-what-affects-them-and-how-they-vary.pdf [3] Board of Governors of the Federal Reserve System. (2021). What is the federal funds rate? Retrieved from https://www.federalreserve.gov/faqs/money_15967.htm [4] Federal Reserve Bank of San Francisco. (2022). How does the federal funds rate affect the economy? Retrieved from https://www.frbsf.org/education/publications/economic-letter/2022/march/how-does-the-federal-funds-rate-affect-the-economy/
- Management in the mortgage market must consider various factors when dealing with mortgage rates across different states, as these rates can significantly fluctuate.
- The states with more lenders offering business typically have lower mortgage rates due to competition in pricing.
- Real-estate investors need to pay attention to mortgage market trends and growth in different locations to secure the best investment deals.
- Financial analysis of a portfolio must include mortgage rates when evaluating various business ventures in the real-estate market.
- The growth potential for businesses in certain states can be influenced by the turnkey cost of mortgages, which can impact overall investing decisions.
- The federal funds rate, controlled by the Federal Reserve, indirectly impacts the mortgage market, causing ripple effects on overall interest rates and business financing.
- Involving a mortgage broker in the finance process can provide real-estate investors with access to multiple lenders and the best possible deals for their investing needs.
