Today’s Mortgage Rates: The States Offering Lowest Rates – July 23, 2025

Looking to buy a home and snag the best mortgage rate possible? You're probably wondering: where can I find the lowest mortgage rates today? As of Tuesday, the states boasting the cheapest 30-year new purchase mortgage rates are New York, Colorado, Washington, California, North Carolina, Tennessee, Florida, New Jersey, and Massachusetts, where average rates hover between 6.65% and 6.82%. It's time to dive into why these rates fluctuate and how you can take advantage of these lower numbers.

Today's Mortgage Rates: The States Offering Lowest Rates

Decoding Mortgage Rate Variations Across States

It's fascinating how mortgage rates can differ from state to state. It's not just some random lottery, but rather a cocktail of economic factors and local market conditions. Here’s a breakdown of what's behind these differences:

• Lender Presence: Not every lender is available in every state. The level of competition among mortgage lenders in each state can significantly impact rates. More competition usually translates to better deals for borrowers as lenders jockey for your business.
• State-Level Regulations: Each state has its own set of rules and regulations governing the mortgage industry. These regulations can affect the cost of doing business for lenders, which they may then pass on to borrowers in the form of higher interest rates.
• Credit Score Averages: States with higher average credit scores might see lower rates overall. Lenders see borrowers with better credit as less risky, so they offer them better terms.
• Average Loan Size: This might seem counterintuitive, but states with smaller loan sizes can sometimes see higher rates. Lenders might need to charge more to make the loan profitable if the loan amount is lower.
• Risk Management Strategies: Every lender has its own approach to managing risk. This can include things like being more conservative in certain markets or focusing on specific types of borrowers.

Seeing these numbers and understanding the reasons behind them always makes me think of the importance of doing your research. The mortgage process can feel overwhelming, but knowledge is truly power!

Current National Mortgage Rate Trends

Let’s zoom out from the state level and look at the national picture. Mortgage rates seem to be stabilizing after a period of some volatility.

• The average rate for a 30-year new purchase mortgage is 6.84%, which is down 7 basis points from the previous two days.
• Last week, the rate was 6.91%, which was a high since mid-June.
• We’ve come a long way from May 2025, when rates spiked to 7.15%, a one-year high.
• Thinking back to March 2025, rates were at their lowest average for the year, around 6.50%.
• And who can forget September 2024, when rates hit a two-year low of 5.89%?

Here's a quick rundown of the national averages for different types of mortgages:

Loan Type	New Purchase Rate
30-Year Fixed	6.84%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.87%
Jumbo 30-Year Fixed	6.78%
5/6 ARM	7.37%

Highest Mortgage Rate States

According to Investopedia's report and Zillow's data, on the other end of the spectrum, here are the states with the highest 30-year new purchase mortgage rates as of July 23, 2025: West Virginia, Alaska, Washington D.C., South Dakota, New Mexico, North Dakota, Oklahoma, Rhode Island, and Wyoming. In these states, the average rates range from 6.90% to 6.97%.

There could be many factors contributing to these slightly higher rates, and it's worth investigating further if you plan to buy property in any of these locations.

What Drives Mortgage Rates? Understanding the Big Picture

To really understand mortgage rates, you need to know what makes them tick. These rates are like dancers following the music of the broader economy. Here are some leading musicians:

• The Bond Market: Mortgage rates often mirror the movements of the bond market, especially the 10-year Treasury yield. When bond yields rise, mortgage rates usually follow suit.
• The Federal Reserve (The Fed): The Fed's actions have a huge impact. This includes everything from buying bonds to setting the federal funds rate.
• Competition Among Lenders: As mentioned before, competition is a key driver. Lenders will often lower rates to attract more borrowers, particularly when demand for mortgages is high.

Thinking back to the economic climate of the past few years, we saw some significant shifts:

• 2021: The Fed was buying bonds like crazy to combat the economic fallout from the pandemic. This kept mortgage rates artificially low.
• Late 2021 – 2023: The Fed started pulling back on bond purchases and aggressively raised the federal funds rate to fight high inflation. This caused mortgage rates to rise sharply.

The Federal Reserve's Influence: Present Day

The Fed's policies continue to be important. While the pandemic emergency is over, the Fed is still playing a significant role in the economy.

• Recent Fed Actions: The Fed cut rates three times in late 2024, bringing the federal funds rate down to a target range of 4.25%–4.5%.
• Future Rate Cuts: The Fed is projected to cut rates a couple more times in 2025, potentially bringing the federal funds rate down to 3.9% by the end of the year. Of course, there are split opinions as some want cuts sooner and some want to wait longer.
• Inflation and Tariffs: The dreaded “I” word – Inflation of even the mention of tariffs can have an impact on Fed policy decisions. While the Fed is trying to balance inflation control with economic growth, any big shifts in these areas can affect how they respond.

Mortgage Rates Implication:

• The 30-year mortgage rate averaged 6.7% in 2024 and is hovering around 6.8% as of late June of 2025. Experts project that rates could potentially fall to 5% by 2028*. Again, this of course depends on rates if the Fed actually follows through on the rumored rate cuts.

Shopping Around for the Best Mortgage Rate

Regardless of the national or state trends, there’s one golden rule: shop around. Mortgage rates can vary significantly from lender to lender, so it pays to do your homework.

• Compare Rates: Don't just settle for the first rate you see. Get quotes from multiple lenders to see who can offer you the best deal.
• Factor in Fees: Pay attention to fees as well as the interest rate. Sometimes a slightly higher rate with lower fees can be a better deal in the long run.
• Understand Points: Some lenders offer lower rates in exchange for paying points upfront. This can be a good option if you plan to stay in the home for a long time, but it might not be worth it if you plan to move soon.
• Talk to a Mortgage Broker: A mortgage broker can help you compare rates from multiple lenders and guide you through the mortgage process.

Remember, the rates you see advertised online are often “teaser rates” designed to attract your attention. The actual rate you qualify for will depend on your individual circumstances, including your credit score, income, and debt-to-income ratio.