Mortgage Rates Today: The States Offering Lowest Rates – July 17, 2025

Looking to buy a home? Figuring out mortgage rates today can feel like navigating a maze. As of Wednesday, the states with the cheapest 30-year new purchase mortgage rates are New York, California, Colorado, New Jersey, Washington, Florida, and Georgia. These states average between 6.75% and 6.87%. Let's break down what's happening with mortgage rates right now and why some states have lower rates than others.

Mortgage Rates Today: The States Offering Lowest Rates

National Mortgage Rates: A Snapshot

Nationally, mortgage rates took a small dip after climbing for three days. The average for a 30-year fixed-rate mortgage is currently around 6.90%. While this is lower than the recent peak of 7.15% in mid-May, it's still higher than the low of 6.50% we saw back in March 2025. Remember back in September 2024? Rates hit a two-year low of 5.89% then!

To give you a broader look at some other national averages:

Loan Type	New Purchase Rate
30-Year Fixed	6.90%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.95%
Jumbo 30-Year Fixed	6.87%
5/6 ARM	7.45%

(Data from Zillow)

Why Do Mortgage Rates Vary by State?

You might be wondering why mortgage rates differ so much depending on where you live. There are several reasons:

• Different Lenders: Not all lenders operate in every state. This means that the level of competition between lenders can vary. More competition tends to mean lower rates.
• Credit Scores: Average credit scores can vary from state to state. Areas with higher average credit scores might see slightly lower rates overall.
• Average Loan Size: The average amount people borrow for a mortgage can also influence rates. Larger loan sizes might come with different risk profiles for lenders.
• State Regulations: Some states have specific regulations related to mortgages. These regulations can affect the costs and risks for lenders.
• Lender Risk Management: Lenders have different strategies for managing risk. Some lenders might be more willing to offer lower rates to attract customers, while others prioritize higher profits.

States with the Lowest Mortgage Rates (July 17, 2025)

Let's dive into the states where you'll find today's most affordable 30-year mortgage rates. According to Investopedia's report and Zillow's data, those states include:

• New York: Coming in with one of the lowest average rates. NY always seems to be competitive when it comes to mortgages.
• California: Another state where mortgage rates tend to be more favorable. The sheer size of the market probably has something to do with it.
• Colorado: Also offering competitive new purchase rates.
• New Jersey: A consistently strong contender when it comes to low mortgage rates.
• Washington: The Pacific Northwest is seeing attractive rates for homebuyers.
• Florida: A popular destination, and mortgage rates are among some of the lowest in the US right now.
• Georgia: Rounding out the list with solid rate averages for prospective homeowners.

These states posted average mortgage rates between 6.75% and 6.87%.

States with the Highest Mortgage Rates (July 17, 2025)

On the other end of the spectrum, here are the states where it might cost you a bit more to finance a home:

• Alaska
• West Virginia
• Wyoming
• Rhode Island
• Vermont
• Mississippi
• New Mexico
• South Dakota
• Washington, D.C.

These states showed averages ranging from 6.97% to 7.04%.

National Mortgage Rate: A Summary

Factors	Effect on Mortgage Rates
The Level and direction of the bond market	Mortgage rates generally track the yield on the 10-year Treasury bond. When bond yields rise, mortgage rates tend to follow suit, and when they fall, mortgage rates usually decline.
The Federal Reserve's Monetary Policy	The Federal Reserve influences mortgage rates through its monetary policy, particularly regarding bond buying and funding government-backed mortgages.
Competition Among Mortgage Lenders	The level of competition among lenders and across different loan types can impact mortgage rates. More competition often leads to lower rates, as lenders vie for borrowers' business.
Macro and Micro economic factors	Factors like inflation, employment data, GDP growth, and geopolitical events can also influence mortgage rates.

Why Mortgage Rates Fluctuate: A Deeper Dive

Understanding what moves mortgage rates is key to making informed decisions. Here are some of the biggest factors:

• The Bond Market: Mortgage rates are closely tied to the bond market, particularly the 10-year Treasury yield. When bond yields go up, mortgage rates usually follow.
• The Federal Reserve (The Fed): The Fed plays a significant role. Their policies on things like bond buying and setting the federal funds rate have a direct impact.
• Competition Among Lenders: Just like any business, competition drives prices. The more lenders vying for your business, the better chance you have of getting a lower rate.
• The Economy: Factors like employment, inflation, and overall economic growth all influence mortgage rates. For instance, if the economy is booming, rates tend to rise as inflation fears creep in.

Back in 2021, the Fed was buying a lot of bonds to help the economy through the pandemic. This kept mortgage rates surprisingly low. But as they started to reduce those purchases and then raised the federal funds rate in 2022-2023 to fight inflation, mortgage rates climbed.

The Fed's Current Role: What's Happening Now?

As of now, the Fed has held the federal funds rate steady in a target range of 4.25%-4.5%. They cut rates three times in late 2024, but so far in 2025, they've been holding steady.

• Possible Rate Cuts: Current forecasts suggest the Fed might cut rates twice in 2025, hopefully bringing the federal funds rate down to around 3.9% by the end of the year.
• Inflation and Tariffs: Fed Chair Jerome Powell has expressed concerns about potential inflation resulting from tariffs. This makes the timing of any rate cuts uncertain.
• Economic Slowdown: The economy is expected to grow at a slower pace in 2025 (around 1.4%), and unemployment is projected to rise. These factors could push the Fed to cut rates later this year.

Experts estimate that the 30-year mortgage rate could drop to closer to 5% by 2028 if the Fed follows through with its planned rate cuts. However, remember, these are just projections!

What's Next for Mortgage Rates?

The Fed's next meeting is on July 30, 2025. Most analysts expect them to hold rates steady at that meeting. However, if the economic data shows signs of weakening, they might hint at future rate cuts.

The bottom line is that mortgage rates are still influenced by a lot of factors. It's a good idea to stay informed and keep an eye on what the Fed is doing.

How to Find the Best Mortgage Rate for You

Okay, so what can you do to get the best mortgage rate possible? Here are a few strategies that worked well for me:

• Shop Around: This is the most important thing! Don't just go with the first lender you talk to. Get quotes from several different lenders and compare them carefully. Look beyond the rate itself.
• Improve Your Credit Score: A higher credit score almost always means a lower rate. Check your credit report for errors and try to pay down any outstanding debt.
• Save for a Larger Down Payment: Putting down a larger down payment shows lenders that you're less risky. You might also avoid paying private mortgage insurance (PMI).
• Consider a Shorter Loan Term: While the monthly payments will be higher, a 15-year mortgage usually comes with a lower interest rate than a 30-year mortgage.
• Be Patient: If you don't need to buy a home right away, consider waiting. Interest rates can change quite dramatically based on the current financial situations.

Buying a home is a huge step, and getting the best mortgage rate can save you a lot of money over the life of the loan. Do your research, shop around, and don't be afraid to negotiate.