Today’s Mortgage Rates: The States Offering Lowest Rates – July 18, 2025

Looking for the best mortgage rates today? As of Thursday, you'll generally find the lowest 30-year fixed mortgage rates in New York, New Jersey, California, Washington, Florida, Texas, Georgia, North Carolina, and Oklahoma, where average rates hover between 6.78% and 6.89%. Let's dive into what’s influencing these rates and how you can snag the best deal.

Today's Mortgage Rates: The States Offering Lowest Rates

Why Do Mortgage Rates Vary by State?

It's easy to assume that mortgage rates are the same everywhere, but that's simply not the case. Several factors contribute to the differences we see from state to state. It’s like shopping for gas – the price varies based on location, right? Mortgages are similar, though the reasons for variation are a bit more complex. Here’s a simple breakdown:

• Lender Presence and Competition: Not all lenders operate in every state. The level of competition among lenders in a particular region can significantly impact rates. More competition often means lower rates as lenders fight for your business.
• State-Specific Regulations: Real estate laws and regulations vary widely across states. These laws can influence the cost of doing business for lenders, which in turn affects the rates they offer.
• Credit Score Averages: Average credit scores can differ by state. Lenders often consider the overall creditworthiness of borrowers in a region when setting rates. Higher average credit scores may reflect lower risk and therefore lower rates.
• Average Loan Size: The average loan size can also vary by state, reflecting differences in housing costs. This can impact a lender's risk assessment and influence the rates offered.
• Risk Management Strategies: Lenders have different approaches to managing risk. Some lenders may be more conservative, offering slightly higher rates to offset perceived risks, while others may be more aggressive.

The States with the Lowest Mortgage Rates Right Now

According to Investopedia's report and Zillow's data, here's a breakdown of the states offering the lowest 30-year fixed mortgage rates for new purchases:

• New York: Average rates around 6.78%.
• New Jersey: Rates averaging 6.80%.
• California: Mortgage rates averaging 6.82%.
• Washington: You might see 6.84% rate on average.
• Florida: Rates hovering around 6.85%.
• Texas: Averages of about 6.86%.
• Georgia: Approximatley 6.87% rate.
• North Carolina: Similar to Georgia .
• Oklahoma: Rates around 6.89%.

The States with the Highest Mortgage Rates Today

On the flip side, some states are seeing higher mortgage rates than others. As of today, July 18, 2025, these states are experiencing the highest rates:

• Alaska: You might see rates around 6.97%.
• West Virginia: Lookout for, rates averaging 6.99%.
• North Dakota: Approximatley 7.01% rate.
• Washington, D.C.: Rates you might see close to 7.03%.
• Wyoming: Rates averaging roughly around 7.04%.
• Maine: Rates hovering around 7.05%.
• New Mexico: Averages of about 7.06%.
• South Dakota: You might see rate of 7.07%.

National Mortgage Rate Trends

Even though state-specific factors play a role, it's essential to understand the overall national trends affecting mortgage rates. Think of it like the tide – it affects all boats, but some boats are closer to shore than others.

• National Averages: The national average for a 30-year fixed mortgage is currently at 6.91%. That's up slightly from yesterday but still better than mid-May when rates hit a one-year high of 7.15%.
• Other Loan Types: Here's a quick look at national averages for other common loan types:
  • FHA 30-Year Fixed: 7.55%
  • 15-Year Fixed: 5.93%
  • Jumbo 30-Year Fixed: 6.86%
  • 5/6 ARM: 7.44%
• Historical Context: Remember when rates dipped to 5.89% in September 2024? Those were the lowest rates we'd seen in two years! While we're not quite there yet, understanding these historical trends helps put current rates into perspective.

Factors Influencing Mortgage Rates

Mortgage rates aren't pulled out of thin air. Several key factors play a crucial role in determining where they land:

1. The Bond Market: Mortgage rates often track the 10-year Treasury yield. When Treasury yields rise, mortgage rates usually follow suit, and vice-versa.
2. Federal Reserve Policy: The Federal Reserve's actions have a significant impact. The Fed influences rates through bond purchases and by setting the federal funds rate. Recently, the Fed has held the federal funds rate steady in the target range of 4.25%-4.5%, but future cuts are anticipated.
3. Inflation: Inflation is a huge driver. When inflation is high, the Fed often raises rates to cool down the economy, which impacts mortgage rates. We are in a high inflationary setting right now.
4. Economic Growth: A strong economy generally leads to higher interest rates as demand for borrowing increases. Conversely, a slowing economy can put downward pressure on rates.

What the Fed's Recent Actions Mean for You

The Federal Reserve's moves are always closely watched because they have a ripple effect throughout the entire economy. Here's what you need to know:

• Recent Rate Cuts: The Fed cut rates three times in late 2024. This bought some relief to the market.
• Future Expectations: In June 2025, the Fed reaffirmed plans for two more rate cuts in 2025. However, there's debate among policymakers about when these cuts will happen. Some want to move as early as July or September, while others prefer to wait.
• Impact of Tariffs: Tariffs introduced might bring inflation, which will impact the timing of rate cuts indirectly.
• Economic Slowdown: The is expecting moderate GDP growth of 1.4% for 2025, along with a slight increase in unemployment. These factors could prompt the Fed to cut rates later this year.

How to Get the Best Mortgage Rate

Okay, so you know what's driving mortgage rates today and where to find the lowest ones. Now, how do you actually get the best rate for yourself? Here are some tips:

• Improve Your Credit Score: This is the single biggest factor you can control. Pay your bills on time, keep your credit utilization low, and avoid opening too many new accounts at once.
• Save for a Larger Down Payment: A larger down payment reduces the lender's risk and can result in a lower interest rate.
• Shop Around and Compare Rates: Don't just go with the first lender you find. Get quotes from multiple lenders and compare their rates, fees, and terms.
• Consider Different Loan Types: Explore options like fixed-rate mortgages, adjustable-rate mortgages (ARMs), and FHA loans to see which one best suits your needs.
• Negotiate: Don't be afraid to negotiate with lenders. See if they're willing to match or beat a competitor's offer. Sometimes all you have to do is ask!.
• Lock in Your Rate: Once you find a rate you're happy with, lock it in to protect yourself from potential rate increases. But watch out if you are expecting a drop in the rates. Locking in could mean a missed opportunity.

Will Mortgage Rates Go Down?

That's the million-dollar question, isn't it? While it's impossible to predict the future with certainty, here's what analysts are saying:

• Projected Declines: If the Fed follows through with its planned rate cuts, analysts project that 30-year mortgage rates could decline to around 5% by 2028.
• Market Expectations: Bond markets are currently pricing in a relatively low chance of a rate cut in July 2025, with higher odds for cuts in September or October.
• Next Steps: Keep an eye on the Fed's upcoming meeting on July 30, 2025. While no immediate rate cut is expected, policymakers' signals could provide clues about the timing of future cuts.