Mortgage Rates Today: The States Offering Lowest Rates – July 15, 2025

Wondering where to find the best deals on a mortgage right now? As of today, July 15, 2025, the states with the lowest 30-year new purchase mortgage rates are New York, California, New Jersey, North Carolina, Colorado, Minnesota, and Pennsylvania, with rates averaging between 6.69% and 6.85%. Keep reading to find out why mortgage rates vary so much and how you can snag the best deal.

Now, it's not just about getting the lowest rate; it's about understanding why rates are the way they are and finding the best fit for your specific financial situation.

Mortgage Rates Today: The States Offering Lowest Rates – July 15, 2025

Why the Rate Rollercoaster? Understanding Mortgage Rate Fluctuations

Mortgage rates are never set in stone. They bob and weave based on a bunch of interconnected factors, making it feel like you're trying to predict the weather. Here’s a rundown of the key players influencing mortgage rates:

• Bond Market Behavior: Consider mortgage rates linked to the 10-year Treasury yield’s performance like dance partners.
• Federal Reserve (The Fed): The Fed’s decisions on monetary policy, especially when it comes to buying bonds and backing government mortgages, have a huge impact.
• Lender Competition: Intense competition among mortgage lenders and different loan types leads to rate adjustments.

All these factors can shift at once, making it hard to tell exactly what causes rate changes. In fact, the Fed Funds Rate and mortgage rates can sometimes move in opposite directions. But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases, when they raised the benchmark rate 5.25 percentage points over 16 months, mortgage rates surged during this period.

National Mortgage Rate Snapshot

Before we dive into specific states, let's take a quick look at the national average mortgage rates as of today:

Loan Type	New Purchase Rate
30-Year Fixed	6.87%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.90%
Jumbo 30-Year Fixed	6.79%
5/6 ARM	7.47%

Keep in mind that these are just averages. Your individual rate will vary based on your credit score, down payment, and other factors.

The States Where Mortgage Dreams Are a Bit More Affordable

Now, let's get to the good stuff. According to Investopedia's report and Zillow's data, here are the states with the lowest mortgage rates right now:

• New York: NY mortgage rates are at an attractive low.
• California: The Golden State also shines when it comes to lower rates.
• New Jersey: The state boasts of rates between 6.69% and 6.85%.
• North Carolina: NC also offers attractive mortgage rates to homeowners.
• Colorado: Colorado, a state known for its high quality of life, currently, also has some of the lowest rates.
• Minnesota: The state offers rates that are relatively lower than other states.
• Pennsylvania: This state offers interest rates between that are relatively less than other states.

It’s worth noting again that these are averages. Your actual rate might be different. I recommend getting personalized quotes from several lenders in your state to see where you stand.

Why the Regional Disparity? State-by-State Rate Differences Explained

Why do mortgage rates vary so much from state to state? It's not random chance. Several factors are at play:

• Different Lenders, Different Territories: Not all lenders operate in every state. This can limit competition and affect rates.
• Credit Score Variations: The average credit score can vary by state, impacting the risk lenders perceive.
• Loan Size Differences: Average loan sizes can differ, influencing lender pricing strategies.
• State-Specific Regulations: Each state has its own set of rules and regulations for the mortgage industry, affecting lender costs and, ultimately, rates.

The Other Side of the Coin: States With Higher Mortgage Rates

Unfortunately, not every state can offer rock-bottom rates. As of today, these states have some of the highest 30-year new purchase rates. These high-rate states registered averages between 6.93% and 7.00%.

• West Virginia
• Alaska
• Washington, D.C.
• Wyoming
• Kansas
• Mississippi
• Missouri
• New Mexico
• North Dakota
• Oklahoma

If you live in one of these states, don't despair! It just means it's even more important to shop around and compare rates diligently.

Digging Deeper: The Fed's Role and Mortgage Rates

The Federal Reserve continues to play a crucial role in shaping mortgage rates. To understand where we are today, let's recap recent moves and outlook.

Recent Fed Actions and How They Affect You

• Rate Holds in 2025: Through June 2025, the Fed has held rates steady, maintaining the federal funds rate in a target range of 4.25%–4.5%.
• Future Rate Cuts: It is widely expected that the Fed will make further rate reductions.

Key Influences on Rate Policy

• Inflation and Tariffs: Factors like tariffs and their effect on inflation are closely monitored, although they are considered temporary shocks.
• Economic Slowdown Expected: Projected weaker GDP growth and increasing unemployment could pressure the Fed to implement rate cuts.
• Political Considerations: Despite external pressures for rate cuts, the Fed remains focused on economic data.

How to Snag the Best Mortgage Rate: My Top Tips

Alright, after all that data and analysis, what can you do to get the best possible mortgage rate? Here's my practical advice:

• Shop Around, Shop Around, Shop Around: This is the single most important thing you can do. Get quotes from multiple lenders – banks, credit unions, and online lenders. Don't just settle for the first offer you see.
• Boost Your Credit Score: A higher credit score means a lower risk for lenders, which translates to a better rate for you. Check your credit report for errors and work on paying down debt.
• Increase Your Down Payment: A larger down payment reduces the amount you need to borrow, which can also lead to a lower rate. Plus, you'll build equity faster.
• Consider a Shorter Loan Term: While the monthly payments will be higher, a 15-year mortgage typically comes with a lower interest rate than a 30-year mortgage.
• Don't Be Afraid to Negotiate: Mortgage rates aren't always set in stone. If you have a strong credit profile and have done your research, don't be afraid to ask lenders to match or beat a competitor's offer.
• Understand the Fine Print: Pay attention to the fees and closing costs associated with the mortgage. Sometimes, a slightly higher rate with lower fees can be a better deal overall.
• Work with a Mortgage Broker: A mortgage broker can shop around on your behalf and find the best rates and terms for your specific needs.

The Bottom Line: Knowledge is Power

The mortgage market can feel overwhelming, but understanding the factors that influence rates and knowing how to shop smart can empower you to make informed decisions. By staying informed and taking a proactive approach, you can increase your chances of securing a great mortgage rate and achieving your homeownership dreams.