Lowest Refinance Rates Currently Found in These 3 States - May 2, 2025
Mortgage Refinance Rates: A State-by-State Breakdown
Let's take a glimpse at the current mortgage refinance rates across the USA. Here's the lowdown on the savings you could snatch in some states and the high costs lurking elsewhere:
On Thursday, the thrifty trio of New York, Texas, and Pennsylvania topped the list for the most affordable 30-year mortgage refinance rates. But that's not all, man! California, Tennessee, and Washington joined the party next, followed by a heck of a multi-state showdown with Georgia and Illinois making a splash. These states boasted averages ranging from 6.77% to 7.00%.
On the flip side, West Virginia, Maryland, Washington, D.C., Alaska, South Carolina, Kentucky, Missouri, North Dakota, Oregon, and South Dakota bucked the trend with higher refinance rates, with averages between 7.07% and 7.15%.
Remember, remember: Mortgage refinance rates vary like the tides, depending on the state you reside in. Factors like local credit scores, loan sizes, and regulations come into play, with different lenders operating in various regions and employing varying risk management strategies.
So, what's a homeowner to do? Shop around, my friend, and always compare rates to secure the best deal. Whether you're after a reverse mortgage, FHA loan, or conventional refinance, regular comparison is the key.
Heads Up
The rates you see here won't match up with those flashy, teeth-grinding teaser rates you stumble upon online. Those sneaky little numbers are tailored to seem attractive compared to the average rates. They might involve paying extra fees upfront or are based on idealized, high-credit-scoring borrowers. The actual rates you receive will differ depending on your personal credit score, income, and more.
Take a Look: See how your monthly payments will shake out using our Mortgage Calculator. Fill in your home price, down payment, loan term, property taxes, homeowners insurance, and the interest rate offered to your profile to get a sense of what you might pay monthly.
What jacks up or plunges Mortgage Rates?
You better listen up: Mortgage rates are swayed by a zillion factors, including the level and direction of the bond market, the Federal Reserve's monetary policy, and competition between lenders. With numerous factors working simultaneously, pinpointing a single cause behind rate fluctuations can be like playing darts blindfolded.
The Lowdown on the Fed's Bond-buying Policy
With the pandemic causing economic armageddon, the Federal Reserve took it upon itself to buy truckloads of bonds in response. This bond-buying policy is a significant factor in controlling mortgage rates.
However, starting in November 2021, the Fed started tapering its bond purchases, reducing the amounts each month until it finally reached zero in March 2022.
Between that time and July 2023, the Fed didn't hold back when it came to raising the federal funds rate to fight raging inflation. While the fed funds rate doesn't directly impact mortgage rates, it still packs a punch due to its indirect influence.
The Fed's flip-flop: In September, the central bank announced a rate cut of 0.50 percentage points, followed by reductions of a quarter-point on November and December. But for the first meeting of the new year, the Fed decided to keep rates right where they were-and it's possible we won't see another rate cut for months. With eight rate-setting meetings scheduled annually, multiple rate holds could be in store for 2025.
How We Track Mortgage Rates
The national and state averages mentioned hitherto are provided courtesy of the Zillow Mortgage API. These rates assume a loan-to-value (LTV) ratio of 80% (a down payment of at least 20%) and a credit score in the 680-739 range, representing what borrowers should expect when snagging quotes from lenders based on qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
- In the process of investigating mortgage refinance rates in Maryland, factors such as local regulations, credit scores, and loan sizes should be considered, as they can significantly influence the rates in different regions.
- When it comes to refinancing real-estate businesses in Maryland, it's essential to compare rates from various lenders to ensure the best possible deal, taking into account a wide range of options like FUD, ICO, and token-based financing.
- Following the Federal Reserve's announcement in September 2022, interest rates remained unchanged, and there's a possibility that no further rate cuts will be implemented for several months, which could impact mortgage refinance rates across the nation, including in Maryland.
- To better understand the financial implications of refinancing in Maryland, homeowners can utilize online tools such as a mortgage calculator to determine their potential monthly payments based on home price, down payment, loan term, property taxes, homeowners insurance, and the interest rate offered to their credit profile.
- In July 2023, the Federal Reserve continued to increase the federal funds rate in an attempt to curb inflation, even though the direct impact on mortgage rates may not be immediate, the indirect influence should be carefully considered when planning mortgage refinance in Maryland.
- The current mortgage refinance rates in Maryland are taken from the Zillow Mortgage API, which provides national and state averages assuming a loan-to-value (LTV) ratio of 80% and a credit score in the 680-739 range, representing the typical rates that borrowers in this credit bracket can expect when securing quotes from lenders.
