Mortgage Rates Today: The States Offering Lowest Rates – July 30, 2025

Looking to buy a home? Finding the best mortgage rates can save you thousands of dollars over the life of your loan. The states with the cheapest 30-year new purchase mortgage rates are New York, California, New Jersey, Florida, Washington, North Carolina, Colorado, Georgia, and Texas, registering rate averages between 6.73% and 6.84%.

Mortgage Rates Today: The States Offering Lowest Rates

Why Mortgage Rates Vary So Much

One of the first things people ask me is, “Why are mortgage rates different from state to state?” It's a fair question! Several factors are at play.

• Lender Presence: Some lenders simply don't operate in every state. The fewer lenders competing for your business, the higher the rates can be.
• Credit Scores: The average credit score in a state can influence overall rates. States with higher average scores might see slightly better rates.
• Loan Sizes: The average loan size can also have an impact. In areas with pricier properties, rates might be adjusted to reflect the lenders' risk.
• State Regulations: Believe it or not, state regulations can play a role. Some states have stricter rules for lending, which can affect rates.
• Risk Management by Lenders: At the end of the day, lenders have different ways of assessing risk. Some might be more willing to offer lower rates in certain areas than others.

The Cheapest States for Mortgage Rates (July 30, 2025)

Okay, let's get to the good stuff! As mentioned earlier, according to Investopedia's report and Zillow's data, here's a quick view of the states with the lowest rates as of Tuesday:

• New York
• California
• New Jersey
• Florida
• Washington
• North Carolina
• Colorado
• Georgia
• Texas

These states saw average rates between 6.73% and 6.84%– but why? Well, these are states with generally robust economies and large housing markets. This means more competition among lenders, which can drive rates down.

The Most Expensive States for Mortgage Rates

On the flip side, some states had higher mortgage rates. As of July 30, 2025, these were the states with the priciest 30-year new purchase rates:

• Alaska
• West Virginia
• Kansas
• New Mexico
• Washington, D.C.
• Wyoming
• Hawaii
• Iowa
• Oklahoma
• Rhode Island

In these states, average rates ranged from 6.94% to 7.10%. Again, various factors contribute, including smaller populations, less competition among lenders, and potentially different risk assessments.

National Mortgage Rate Trends: A Quick Overview

It's always a good idea to keep an eye on national mortgage rate trends. Here's a snapshot:

• 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: 7.33%

These figures give you a sense of where things stand nationally. I always recommend looking at these numbers in context, though. What's been happening over the past few months? What are experts predicting for the future? I think staying informed can help you make smarter decisions.

By the way, the national 30-year rates actually fell 5 basis points Tuesday, reversing the 3-day rising momentum. The current average of 6.86% is below the one-year high of 7.15% in May. In March, the 30-year rates had dropped to 6.50%, which was the lowest average of 2025. Last September, the 30-year rates had plunged to the 2-year low of 5.89%.

Important Reminder About ‘Teaser' Rates

You see those really low mortgage rates advertised online? Be careful! Those are often ‘teaser' rates, and they might not be what they seem.

• These rates often require you to pay points upfront.
• They might be based on a hypothetical borrower with a perfect credit score and a massive down payment.
• The actual rate you qualify for will depend on your unique credit score, income, and financial situation.

How the Federal Reserve Impacts Mortgage Rates

The Federal Reserve (also called the Fed) plays a huge role in setting mortgage rates. Here's the deal:

• Rate Cuts in Late 2024: The Fed cut rates three times between September and December 2024.
• 2025 Outlook: Plans are in place for two rate cuts this year, but the timing is still up in the air.
• Key Influences: Factors like inflation, economic growth, and even political pressure can influence the Fed's decisions.

Basically, when the Fed cuts rates, mortgage rates tend to follow suit. It's not a direct connection, but it's definitely something to watch. Currently the analysts are projecting the 30-year mortgage rate to decline to 5% by 2028 if the Fed follows through on the rate cuts.

Calculate Your Monthly Mortgage Payment

Want to get a sense of what your monthly payment might look like? Here is a quick breakdown of the calculation using an example.

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

With those numbers, your monthly payment would be around \$2,649.04. But remember, that's just an estimate. It doesn’t take into account things like property taxes and homeowners insurance, which can add hundreds of dollars to your monthly bill.

Here's a breakdown with the additional costs of property taxes, homeowners insurance.

Item	Amount
Principal & Interest	$2,264.38
Property Taxes	$256.67
Homeowners Insurance	$128.00
Total Monthly Payment	$2,649.04
Mortgage Size	$352,000.00
Mortgage Interest	$463,176.16
Total Mortgage Paid	$815,176.16

What Affects Mortgage Rates: A Deep Dive

Mortgage rates don't just appear out of thin air! It is important to understand which factors are involved so as a future home-owners, we can be alert and make rational decisions. Think of them as a complex equation with lots of moving parts. Here are some of the most important factors:

• The Bond Market: Mortgage rates are closely tied to the bond market, especially 10-year Treasury yields.
• The Federal Reserve: As we discussed, the Fed's monetary policy has a big impact.
• Competition Among Lenders: More competition can lead to lower rates.
• The Economy: A strong economy typically means higher rates, while a weaker economy can lead to lower rates.
• Inflation: High inflation usually pushes rates up.
• Your Credit Score: A good credit score can get you a lower rate.
• Your Down Payment: A larger down payment can also help you secure a better rate.

Personal Thoughts

From my hands-on experience as a real estate advisor, I want tell real-estate newbies that getting good mortgage rates is like playing a long game. Don't rush into the first offer you see. Take your time, do your research, and compare rates from multiple lenders. And don't be afraid to negotiate! Lenders want your business, so they might be willing to work with you on the rate. I've seen so many people save big money simply by being proactive and informed.

And finally, remember that mortgage rates are just one piece of the puzzle. I have also seen clients buying luxurious houses that are always empty. Owning property also requires maintenance and other costs. Make sure you can comfortably afford your monthly payments, even if rates happen to go up in the future.