Lowest Mortgage Rates Per State on June 16, 2025: A Breakdown
In the heart of the week, these states boast the cheapest 30-year home loans: New York, Connecticut, New Jersey, Colorado, Massachusetts, California, and Washington, with averages racing between 6.75% and 6.87%. Meanwhile, it's the Alaska, West Virginia, Mississippi, Montana, Vermont, Wyoming, Kansas, and Maine residents who are facing the priciest rates, with averages soaring between 6.98% and 7.05%.
But worry not, for these mortgage rates change like leaves in the wind! They're affected by the state's local conditions, including credit scores, loan sizes, and lender policies. It's always wise to shop around and compare before you sign on the dotted line!
With rates varying like a chameleon among lenders, it's essential to find your perfect mortgage match and frequently compare deals, regardless of the loan type you're eyeing.
Now, about those published rates—they ain't your run-of-the-mill ads with glowing promises, no sir! Those flashy, attention-grabbing rates are handpicked to reel you in, just like at a carnival, while the averages we offer give you a more realistic expectation of what you're dealing with. Remember, your ultimate rate will depend on credit score, income, and other factors.
On the national scale, last week, 30-year home loans saw a four-day tumble before ticking back up a mite, now resting at 6.91%. Back in May, they peaked at a yearly high, but in March, they sank to a 2025 low, and in September, they plummeted to a two-year low.
Wanna see if you can make sense of your monthly payments? Give our Mortgage Calculator a whirl! It'll take into account your home price, deposit, loan term, property taxes, insurance, and loan interest rate (which is as fickle as the wind and depends on your credit score).
So, what tickles the fancy of mortgage rates? Well, let's not get started on the complex dance between macroeconomic and industry factors, such as:
- The Bond Market: Especially the 10-year Treasury yields, which have a profound influence on mortgage rates.
- Fed's Monetary Policy: Yep, their current strategies can influence everything, from bond buying to funding government-backed mortgages.
- Competition: Among lenders and loan types, of course!
Oftentimes, it's tough to spot which factor is responsible for flipping the rate switch, but rest assured, it's a wild, unpredictable ride!
Macroeconomic factors kept the mortgage market relatively cool for a significant chunk of 2021, with the Fed pumping billions into the bond market in response to the pandemic's economic pressures. However, in November 2021, the Fed began reducing its bond purchases, and the rates uptick began!
But don't think the Fed steps away just like that—they returned with a vengeance, raising the federal funds rate to combat inflation. Although the fed funds rate doesn't directly impact mortgage rates, it's the indirect influence that's caused a dramatic increase in mortgage rates over the previous two years.
Good news, though! In September, the central bank decided to cut the federal funds rate for the first time, and follow-up reductions came in November and December. However, the Fed hasn't made any further cuts as of their most recent meeting, and it might be a while before we see another one.
We fetch the national and state averages you see here via the Zillow Mortgage API. The rates assume a 80% loan-to-value ratio (20% down payment) and an applicant credit score in the 680-739 range—the rates you actually get may differ based on your unique borrower profile. © Zillow, Inc., 2025. For more details on Zillow's policies, visit their Terms of Use.
That's right, folks! A home loan doesn't have to break the bank. Stay focused on your financial goals, create a solid plan, and learn more about how our personalized services can help!
In the realm of finance, various factors such as competition among lenders, monetary policies set by the Federal Reserve including the federal funds rate, and the bond market, particularly 10-year Treasury yields, influence the movement of mortgage rates. To navigate this complex dance, it's essential to educate oneself, shop around for the best deals, and make use of tools like our Mortgage Calculator to understand monthly payments better. When it comes to selecting the ideal mortgage, understanding the role of regulatory bodies, such as the Dao, in managing Initial Coin Offerings (ICOs) and the creation of tokens, could potentially provide alternative avenues for financing a home.
