Archives for June 2025

Looking for the best deal on a mortgage? Today, June 26, 2025, the states boasting the lowest average 30-year mortgage rates for new purchases are New York, Colorado, Connecticut, California, Massachusetts, New Jersey, Florida, Idaho, Utah, and Virginia, with rates hovering between 6.69% and 6.80%. On the other hand, Alaska, Rhode Island, West Virginia, Iowa, New Mexico, North Dakota, South Dakota, and Maine, have the highest, ranging between 6.90% and 7.05%. But bear in mind as with everything related to money, Your Mileage May Vary!

U.S. States With Lowest Mortgage Rates Today – June 26, 2025

Okay, now that we've got the headline figures out of the way, let’s dive deeper into why these differences exist, what it means for you, and how you can snag the best possible rate, no matter where you live.

Why Do Mortgage Rates Vary From State to State?

It’s tempting to think mortgage rates should be uniform across the U.S., like the price of a Big Mac (though, even that varies!). However, several factors can influence mortgage rates from one state to another. These include:

• Lender Presence and Competition: Not all lenders operate in every state. A state with more competition between lenders might see slightly lower rates as they jostle for your business.
• State-Specific Regulations: Each state has its own set of regulations governing the mortgage industry, which can impact lender costs and, ultimately, the rates they offer.
• Credit Score Averages: States with higher average credit scores might see slightly lower rates overall since lenders perceive lower risk.
• Average Loan Size: The average loan size within a state, coupled with loan limits, might influence rates. Larger loan amounts sometimes come with slightly different pricing structures.
• Risk Management Variation: A lender's internal appetite for risk can result in rate differences. For example, some lenders are comfortable working with loans requiring private mortgage insurance (PMI), while others seek to avoid these.

Essentially, it's a mix of local economics and lender strategy that creates these state-by-state variations. However, it shouldn't affect the rate in any way.

States Showcasing the Lowest Mortgage Rates

Let's take a closer look at the states currently enjoying some of the most competitive mortgage rates, according to Investopedia's analysis and Zillow's data:

• New York: New York is a financial hub along with having a diverse blend of urban areas and suburban communities.
• Colorado: Known for its outdoor lifestyle and booming tech sector, Colorado's attractive real estate market has been balanced by a healthy mortgage rate.
• Connecticut: The charm of Connecticut lies in its good schools and easy access to New York City, and these have drawn people to move and keep the local real estate market stable.
• California: Despite its high cost of living, California's robust economy and strong demand for housing ensures a steady flow of mortgage activity.
• Massachusetts: Top-notch universities and access to healthcare are a selling point of Massachusetts, which keeps its housing market active.
• New Jersey: Located near NYC and with a lot of jobs, New Jersey has a high demand for real estate.
• Florida: The attractive climate and low tax rates of Florida are a big draw, that help sustain the constant demand for housing.
• Idaho: The appeal of smaller town of Idaho and outdoor recreation, the increase in population has led to competition for homes.
• Utah: Utah's tech employment opportunities and a rapidly increasing population are drawing people into the mix.
• Virginia: Virginia gives access to government jobs and military installations, and an overall good quality of life.

These states often have a combination of strong economies, competitive lending environments, and stable real estate markets, which contribute to their lower average mortgage rates.

States with the Highest Mortgage Rates

Now, let’s turn our attention to the states with the higher end of the spectrum:

• Alaska: Remote and with a unique economy based on natural resources, Alaska has factors that lead to higher lending costs.
• Rhode Island: Small geographic location, Rhode Island's economy could be limiting competition, which means that there are higher rates.
• West Virginia: West Virginia faces some economic challenges, and a more sparse housing market could contribute to higher rates.
• Iowa: Iowa's rural setting and agricultural background might lead to less competition among lenders.
• New Mexico: Economic factors in New Mexico may be restricting lending competition and influencing higher rates.
• North Dakota: Limited competition and a sparse real estate market in North Dakota could lead to higher mortgage rates.
• South Dakota: The rural setting, very similar to North Dakota can increase the mortgage rate.
• Maine: Maine's smaller population and a more exclusive real estate market can affect mortgage rates.

National Mortgage Rate Trends – A Broader Perspective

While state-by-state variations are interesting, it’s crucial to understand the broader national trends influencing mortgage rates. According to recent data, the average 30-year fixed mortgage rate for new purchases is around 6.83%. This marks a decrease of 8 basis points over the past three days, reaching the lowest level since April 4th.

However, it’s worth noting that rates have been higher this year. In mid-May, the average surged to a one-year high of 7.15%. Throughout 2025, we’ve seen fluctuations, with rates dipping to as low as 6.50% in March and even lower, reaching a two-year low of 5.89% in September of last year.

Here’s a snapshot of national averages for different loan types from Zillow:

What's Driving These Fluctuations?

Mortgage rates don’t just magically appear; they’re influenced by a complex web of factors, including:

• The Bond Market: Monitor trends in the bond market, especially 10-year Treasury yields.
• The Federal Reserve (The Fed): The Fed's monetary policy decisions play a large role, especially anything related to bond purchasing.
• Lender Competition: The level of competition between mortgage lenders and different loan types.
• Inflation: Concerns around inflation drive rates up, while confidence in controlling inflation tends to bring them down.

The Fed's Role and What To Expect

The Federal Reserve's actions have a huge impact on mortgage rates. In 2022 and 2023, the Fed aggressively raised the federal funds rate to combat high inflation, causing a dramatic increase in mortgage rates.

The Fed has maintained the federal funds rate at its peak starting in July 2023. Then they announced a first rate cut of 0.50 percentage points in September, with smaller cuts in November and December. However, at their latest meeting, they opted to hold rates steady, suggesting we might not see further cuts for several months. With eight rate-setting meetings scheduled each year, there's a chance we could see several more rate-hold announcements throughout 2025.

How to Secure the Best Rate for You

Now, let’s get to the practical part: how can you get the best possible mortgage rate? Here's my top advice:

1. Shop Around, Shop Around, Shop Around: I can't stress this enough! Get quotes from multiple lenders. Don’t just settle for the first rate you see. Compare rates from different banks, credit unions, and online lenders.
2. Boost Your Credit Score: A higher credit score translates to lower risk in the eyes of lenders, and a lower risk translates to better rates. Check your credit report for errors and take steps to improve your score if needed.
3. Save for a Larger Down Payment: A larger down payment means you'll borrow less money, which can lead to a lower interest rate. Plus, putting down at least 20% can help you avoid private mortgage insurance (PMI).
4. Consider Different Loan Types: Explore different loan types like fixed-rate mortgages, adjustable-rate mortgages (ARMs), FHA loans, and VA loans to see which one best suits your financial situation.
5. Be Aware of “Teaser Rates”: Be cautious of advertised rates that seem too good to be true. These “teaser rates” often require paying points upfront or are based on unrealistic scenarios (like an ultra-high credit score or a smaller-than-typical loan).
6. Negotiate: Don't be afraid to negotiate with lenders. If you get a lower offer from one lender, see if another lender is willing to match or beat it!
7. Understand Your All-In Costs: Don't just focus on the interest rate. Consider all costs, including closing costs, lender fees, and any points you might pay.

Buying a home is a huge, life-changing decision, and something I've gone through myself. Make sure to be fully informed and to take your time.

The Bottom Line

Mortgage rates are dynamic and influenced by a variety of factors, from state-level economic conditions to national monetary policy. While New York, Colorado, Connecticut, California, Massachusetts, New Jersey, Florida, Idaho, Utah, and Virginia shows the lowest rates today, remember that your individual rate will depend on your specific financial situation and creditworthiness. Do your due diligence, shop around, and don't be afraid to negotiate to secure the best possible mortgage rate for your dream home.

If you're looking for the U.S. states with the lowest mortgage rates today, June 25, 2025, your search ends here! As of today, the states boasting the cheapest 30-year new purchase mortgage rates are Colorado, Massachusetts, New York, California, Connecticut, Washington, Maryland, and New Jersey. These states registered average rates between 6.73% and 6.81%. On the flip side, states like Alaska, West Virginia, Iowa, South Dakota, New Mexico, North Dakota, Wyoming, Alabama, and Nevada have the highest 30-year new purchase mortgage rates, ranging from 6.90% to 7.01%.

U.S. States With Lowest Mortgage Rates Today – June 25, 2025

Buying a house is a huge step, and it all starts with those mortgage rates. Let's be honest, understanding the world of mortgages can feel like trying to decipher a secret code. Rates are always changing, and they seem to depend on everything from the economy to, well, who knows what else!

That's why I'm here to break it all down for you, specifically looking at which states are offering the most attractive mortgage rates as of today, June 25, 2025. Mortgage rates can fluctuate significantly from state to state. Why the difference? Keep reading; I'll spill the tea.

Why Do Mortgage Rates Vary By State?

It's a great question because it's not something that everyone understands. I think it's crucial to know the “why's” as well as the “what's.” Here's what I've gathered over time:

• Different Lenders: Not every lender operates in every state. This means the playing field is different depending on where you are buying. More competition can lead to more favorable rates.
• Credit Scores: Average credit scores can vary across states. States with higher average credit scores might see slightly better rates overall.
• Average Loan Size: The size of the average mortgage can also play a role. Large loans may carry different interest rates than smaller loans.
• State Regulations: Each state has different regulations affecting the mortgage industry. This can influence how lenders operate and, in turn, the rates they offer.
• Risk Management: Lenders each have their own risk management strategies. Some lenders might be more willing to offer lower rates in certain areas than others.

Here's a quick table summarizing the reasons:

The Good News: States With Lower Mortgage Rates

Alright, let's talk about the good stuff. According to a report by Investopedia, as of today, June 25, 2025, these states are offering some of the most competitive 30-year new purchase mortgage rates:

• Colorado: Historically, Colorado has a booming real estate, so it's not surprising that it is on the list.
• Massachusetts: This is an attractive state for many to buy new homes.
• New York: I wouldn't have expected New York to be on this list.
• California: Similar to Colorado, California has good real estate, even though it is a bit more expensive to buy there.
• Connecticut: It is nice to be in New England, so I don't think it is so surprising.
• Washington: The Pacific Northwest is a beautiful area.
• Maryland: Mid-Atlantic is a hotspot.
• New Jersey: It is interesting to see both New York and New Jersey on these list. These are usually known to be higher-rate states.

These states have average rates hovering between 6.73% and 6.81%.

The Other Side: States With Higher Mortgage Rates

Now for the not-so-great news. These states are currently showing the highest 30-year new purchase mortgage rates:

• Alaska
• West Virginia
• Iowa
• South Dakota
• New Mexico
• North Dakota
• Wyoming
• Alabama
• Nevada

In these states, rates are averaging between 6.90% and 7.01%.

National Mortgage Rate Trends: A Rollercoaster Ride

Let’s zoom out and look at the big picture. According to the Investopedia report, national mortgage rates have been on something of a rollercoaster. Just today, June 25, 2025, rates on 30-year new purchase mortgages fell by 2 basis points, making it a total drop of 7 basis points over the past two days. The average is now at 6.84%, the lowest it's been since April 4th! It's quite the contrast to mid-May, where rates reached a yearly high of 7.15%.

Digging deeper, March 2025 saw rates dip to 6.50%, the lowest average for the year. But the real standout was September of last year when rates bottomed out at a two-year low of 5.89%. Talk about variance!

A Word of Caution About “Teaser Rates”

It's tempting to jump on those super-low rates you see advertised online. We've all been there! But here’s a little insider info: those are often teaser rates. As Investopedia rightly mentions, these “cherry-picked” rates might require you to pay points upfront or might only be available to borrowers with pristine credit and smaller-than-average loans. The rate you ultimately get will depend on your unique financial situation, including your credit score, income, and other factors.

Pro-Tip: ALWAYS Shop Around!

Let me give you some advice – ALWAYS shop around for the best mortgage rates! Seriously, don’t settle for the first offer you get. Shopping around allows you to compare offers from different lenders, potentially saving you thousands of dollars over the life of your loan. With websites such as Zillow, it seems to make life so much easier. Don’t leave money on the table because you don’t feel like putting in the effort.

What's Driving These Rate Changes?

Mortgage rates aren't just pulled out of thin air. Several factors influence them:

• The Bond Market: Keep an eye on 10-year Treasury yields. These have a significant impact on mortgage rates.
• The Federal Reserve: The Fed's monetary policy, especially bond-buying programs, plays a crucial role.
• Lender Competition: The more lenders compete, the better the rates for you.

It's tough to pinpoint one single cause for rate changes because these factors often move together. For much of 2021, the Fed's response to the pandemic kept rates low. But since then, they've been adjusting course, leading to some pretty wild swings.

Looking Ahead: What's Next for Mortgage Rates?

Predicting the future is never easy, especially regarding mortgage rates. But here's what I'm watching. In the past, the Fed aggressively raised rates to combat inflation. However, recently, the Fed has been more cautious, even hinting at potential rate cuts down the line. With eight rate-setting meetings scheduled each year, we could see multiple announcements about holding rates steady throughout 2025.

Understanding How Your Credit Score Messes With Rates

If you want to get a mortgage, you want a higher credit score, but it's easier said than done! The better your credit score, the lower the mortgage rate a lender is likely to offer. Experian says the best rates generally go to those with scores of 760 or higher. Aim for a VantageScore of 780 or higher for the best mortgage rates available. The takeaway here is: if you can't improve your credit rating, you need to find a good co-signer or consider renting; it might give you more time to save up for a bigger downpayment.

Calculate Your Monthly Mortgage Payment

Want to get a sense of what your monthly mortgage payments might look like? Here's a breakdown, based on a home price of $440,000 and a 20% down payment:

• Home Price: $440,000
• Down Payment: $88,000 (20%)
• Loan Term: 30 years
• APR: 6.67%

Based on these figures, your estimated monthly payment would be around $2,649.04. That includes $2,264.38 for principal and interest, $256.67 for property taxes, and $128.00 for homeowners insurance. It's also important to understand that over the life of the loan, you'll pay a significant amount of interest. In this scenario, the total mortgage interest paid would be $463,176.16, bringing the total amount paid to $815,176.16. Again keep in mind that these numbers are all estimates, if you have a variable interest rate.

Final Thoughts: Navigating the world of mortgage rates can be tricky, but understanding the factors that influence them can help you make informed decisions. Keep an eye on economic trends, shop around for the best rates, and don't be afraid to ask questions. Happy house hunting!

Looking for the states where you can snag the best deal on a mortgage right now? As of today, June 24, 2025, the U.S. states with the lowest mortgage rates for a 30-year new purchase are Colorado, Massachusetts, New York, Utah, California, Virginia, Washington, and Maryland, with rates averaging between 6.77% and 6.81%.

U.S. States With Lowest Mortgage Rates Today – June 24, 2025

Buying a home is a huge decision, and understanding mortgage rates is a critical part of the process. I know, it can feel overwhelming, but don't worry, I'm here to break it down for you. Mortgage rates are constantly in flux, influenced by a whole host of economic factors. And they can vary significantly from state to state, so it's crucial to stay informed to find the best deal for you.

Why Do Mortgage Rates Vary By State?

It's a fair question. Why doesn't everyone just get the same rate, no matter where they live? Well, several factors contribute to these state-level differences. Mortgage rates vary by state primarily because:

• Lender Presence: Not all lenders operate in every state. This means competition can be stronger in some areas than others, and that competition can drive rates down.
• Credit Score Variations: Average credit scores differ from state to state. Lenders will perceive different levels of risk depending on the creditworthiness of a specific state’s population.
• Average Loan Size: Just as credit scores may differ, the average loan size can also be impacted by differing states. This could also affect the lender.
• State Regulations: Mortgage regulations aren't uniform across the country. Some states have stricter rules than others, which can impact lenders' costs and, ultimately, the rates they offer.
• Risk Management: Lenders each have different risk management tactics that can influence the rates they offer.

Think of it like this: imagine two grocery stores in different towns. One town has more competition and stricter regulations on food safety, while the other doesn't. The store in the more competitive, regulated town might have to offer lower prices and higher quality to attract customers. Mortgage rates work in a similar way.

The Best and Worst: A State-by-State Breakdown

As Investopedia's report highlights, let's dive deeper into which states are offering the best and least attractive mortgage rates right now.

States with the Lowest 30-Year New Purchase Mortgage Rates:

States with the Highest 30-Year New Purchase Mortgage Rates:

Keep in mind that these are averages. Your individual rate could differ based on your unique financial situation.

What About National Mortgage Rate Averages?

While it's interesting to see state-level differences, it's also important to keep an eye on the national picture. According to recent data, the national average for a 30-year new purchase mortgage has fallen to 6.86% today, a two-and-a-half-month low. This is a welcome change from the 7.15% peak we saw in mid-May 2025.

Here's a quick snapshot of national averages for different loan types:

• 30-Year Fixed: 6.86%
• FHA 30-Year Fixed: 7.55%
• 15-Year Fixed: 5.88%
• Jumbo 30-Year Fixed: 6.81%
• 5/6 ARM: 7.09%

As you can see, there's a range of options, each with its own pros and cons. Deciding which loan is right for you requires weighing your short-term and long-term financials, your long-term housing goals, and level of risk tolerance.

Don't Get Duped by “Teaser Rates”

You've probably seen super-low mortgage rates advertised online. These are often called “teaser rates,” and they can be misleading. Investopedia points out that these rates are often “cherry-picked” as the most attractive, and they might come with hidden costs or strict requirements.

For example, some teaser rates require you to pay “points” upfront (each point is 1% of the loan amount). Others might be based on a borrower with a near-perfect credit score or a smaller-than-typical loan amount.

The rate you ultimately secure will be based on factors like your credit score, income, and more. So, it can vary significantly from the averages you see here.

What's Driving These Rate Changes?

Understanding why mortgage rates go up or down can help you make smarter decisions about when to buy or refinance. Several factors are at play:

• The Bond Market: Mortgage rates tend to follow the direction of the bond market, especially yields on 10-year Treasury bonds. When bond yields rise, mortgage rates usually follow suit.
• The Federal Reserve: The Fed's monetary policy has a big impact. The Fed influences mortgage rates through bond buying and funding government-backed mortgages.
• Competition: The level of competition between mortgage lenders can also affect rates. When lenders are competing fiercely for business, they may lower rates to attract borrowers.

The Fed Factor: What's the Latest?

The Federal Reserve's actions play a particularly important role in the mortgage market.

After aggressively raising interest rates in 2022 and 2023 to combat decades-high inflation, the Fed paused rate hikes for a while. In September 2024, they decreased the rate. In 2025, the Fed continued on its previous path of holding rates steady, reflecting caution about the ongoing economic situation.

These actions, directly and indirectly, influence mortgage rates. Even though the fed funds rate often does not directly influence mortgage rates, they do tend to move in similar directions. Economists keep a close eye on the actions that the Federal Reserve undertakes to get an idea of where rates will go in the future.

What About the Future? Expert Predictions

What does 2025 and beyond hold for mortgage rates? According to Fannie Mae's Forecast, mortgage rates are predicted to end 2025 at 6.5% and 2026 at 6.1%.

Keep in mind that these are just forecasts, and the future is never certain. Economic conditions can change quickly, throwing even the best predictions off course.

My Advice: Shop Around and Be Prepared

So, what's the takeaway?

• Mortgage rates vary by state. Don't assume that the national average applies to you.
• “Teaser rates” can be misleading. Focus on the rate you're actually offered, not the one advertised online.
• Stay informed about economic trends and the Federal Reserve's actions.
• Get pre-approved: This will give you a clear idea of how much you can borrow and what interest rate you can expect.
• Don't be afraid to negotiate. Mortgage lenders want your business, so see if you can negotiate a better rate or terms.

As someone who has been in the real estate business for 20+ years, I always tell people, “Knowledge is power,” and when it comes to mortgages, that's especially true. Good luck with your home-buying journey!