States With Lowest Mortgage Rates Today – June 10, 2025

If you're in the market for a new home or looking to refinance, you're probably wondering where you can snag the best deal on a mortgage. As of today, June 10, 2025, the states with the lowest 30-year new purchase mortgage rates are New York, Colorado, California, Connecticut, Washington, Massachusetts, New Jersey, and Pennsylvania, with averages ranging from 6.87% to 6.97%. But what does this mean for you, and why do rates vary so much from state to state? Let's dive deep into understanding mortgage rates and how to find the best one for you.

States With Lowest Mortgage Rates Today – June 10, 2025

Why Mortgage Rates Vary by State

Have you ever wondered why a friend in one state gets a better mortgage rate than you do, even if you have similar credit scores? It's not just random luck. Several factors influence mortgage rates at the state level:

• Varying Lender Presence: Not all lenders operate in every state. The level of competition among lenders in a particular area can significantly impact the rates they offer. If there are only a few lenders, they may not need to be as competitive, leading to higher rates.
• Credit Score Averages: States with higher average credit scores might see lower mortgage rates overall. Lenders perceive borrowers in these states as less risky.
• Average Loan Size: The average loan size in a state can also play a role. Larger loan sizes might be seen as riskier, or they might allow lenders to offer slightly lower rates because of the higher overall revenue.
• State-Level Regulations: Each state has its own unique set of regulations regarding mortgages. These regulations can affect the costs and risks associated with lending, which, in turn, influences mortgage rates.
• Risk Management Strategies: Lenders have different risk management strategies. Some lenders might be more conservative and offer higher rates to mitigate perceived risks, while others might be more aggressive and offer lower rates to attract more business.

Today's National Mortgage Rate Averages

According to Investopedia, after a brief rise, rates on 30-year new purchase mortgages have decreased slightly, averaging around 7.00% as of Monday, June 10, 2025. While this is a slight dip from the one-year high of 7.15% in mid-May, it's important to remember that mortgage rates are constantly fluctuating. Let's take a closer look at the national averages for different loan types from Zillow:

Loan Type	New Purchase
30-Year Fixed	7.00%
FHA 30-Year Fixed	7.15%
15-Year Fixed	6.05%
Jumbo 30-Year Fixed	6.99%
5/6 ARM	7.30%

States With the Cheapest Mortgage Rates

Here’s a breakdown of the cheapest 30-year new purchase mortgage rates by state:

• New York (6.87%): Known for its robust financial sector, New York often sees competitive mortgage rates.
• Colorado (6.89%): A growing economy and a desirable real estate market can contribute to favorable rates.
• California (6.91%): Despite its high home prices, California's large market often sees competitive rates.
• Connecticut (6.93%): With a relatively stable housing market, Connecticut can offer attractive mortgage rates.
• Washington (6.94%): The tech industry boom in Washington might contribute to a healthy housing market and competitive rates.
• Massachusetts (6.95%): Similar to New York, Massachusetts has a strong financial sector that supports competitive mortgage rates.
• New Jersey (6.96%): Proximity to major financial hubs, along with varying factors , can drive down rates in New Jersey.
• Pennsylvania (6.97%): Has become the 24th most moved-in state, and third best northeast state for inbound moves.

States With the Most Expensive Mortgage Rates

On the other end of the spectrum, these states have the highest 30-year rates which range from 7.05% to 7.13% :

• Alaska
• West Virginia
• Mississippi
• Hawaii
• Nevada
• New Mexico
• Iowa
• Nebraska
• North Dakota
• Vermont

These states might have higher rates due to a combination of factors, including less competition among lenders, higher perceived risk, or state-specific regulations.

Don't Fall for Teaser Rates

Have you ever seen those incredibly low mortgage rates advertised online and wondered if they're too good to be true? They probably are. These “teaser rates” are often cherry-picked as the most attractive and don't represent the average rates available. Here's what to keep in mind:

• Points: Teaser rates often require you to pay points upfront, which are fees you pay to the lender to lower your interest rate. Paying points can make sense if you plan to stay in the home for a long time, but it might not be worth it if you plan to move in a few years.
• Ultra-High Credit Scores: These rates might be available only to borrowers with exceptional credit scores. If your credit score isn't perfect, you won't qualify for the advertised rate.
• Smaller Loan Sizes: Sometimes, teaser rates are only available for smaller-than-typical loans.
• The rate you ultimately secure will be based on factors like your credit score, income, and more, so it can vary from the averages you see here.

Factors influencing these predictions:

• Federal Reserve (Fed) policy: The Fed's decisions on interest rates play a significant role in mortgage rates. While some expect the Fed to eventually cut rates, the timing and extent of those cuts remain uncertain.
• Inflation: Persisting inflationary pressures may lead to slower or more gradual rate cuts, potentially keeping mortgage rates higher for longer.
• Economic growth and stability: The overall health of the economy, including potential recessions or continued growth, can impact mortgage rates.
• Treasury yields: Long-term Treasury yields, which are closely linked to mortgage rates, are also a key factor in the forecast.

What Causes Mortgage Rates to Rise or Fall?

Mortgage rates aren't just pulled out of thin air. They're influenced by a complex web of factors, including:

• Bond Market: Mortgage rates are closely tied to the bond market, particularly the 10-year Treasury yield. When Treasury yields rise, mortgage rates tend to follow suit.
• The Federal Reserve (The Fed): The Fed's monetary policy, including its bond-buying programs and federal funds rate, can significantly impact mortgage rates.
• Competition: The level of competition among mortgage lenders affects rates. More competition typically leads to lower rates.

It's tough to pinpoint exactly how much any one factor affects rates. It's more like a complex dance where these influences all move together.

Looking Ahead: Mortgage Rate Predictions for 2025

So, what can you expect for mortgage rates in the coming months? While it's impossible to predict the future with certainty, here's what experts are saying:

• Experts generally predict that mortgage rates will generally trend downward, though not to the historically low levels seen during the pandemic. Most forecasts anticipate rates settling between 5.5% and 6.5% by mid-2025, potentially reaching 6.2% or 6.1% by the end of the year. However, some projections suggest a more cautious approach, with rates remaining above 6.5% throughout the year.
• Fannie Mae anticipates rates to end 2025 at 6.1% and 5.8% by the end of 2026.
• The Mortgage Bankers Association (MBA) projects a more cautious outlook, with rates possibly remaining above 6.7% for a longer period.
• National Association of Realtors (NAR) foresees an average rate of 6.4% in 2025.
• Redfin predicts rates to start and end the year around 7%, with an average of 6.8%.

My Advice

Based on what I know, I can say that even if mortgage rates decline as projected, they are unlikely to return to the very low levels seen during the pandemic. The extent and timing of those declines will depend on a variety of factors, including economic conditions and the Fed's actions.

Important Takeaway

Mortgage rates are expected to decrease slightly throughout 2025

How to Get the Best Mortgage Rate

Given all these factors, what can you do to secure the best mortgage rate possible? Here are a few tips:

• Shop Around: Don't settle for the first rate you're offered. Get quotes from multiple lenders to see who can offer you the best deal.
• Improve Your Credit Score: A higher credit score usually means a lower interest rate. Check your credit report and take steps to improve your score before applying for a mortgage.
• Save for a Larger Down Payment: A larger down payment can lower your interest rate and reduce your monthly payments.
• Consider a Shorter Loan Term: 15-year fixed-rate mortgages typically have lower interest rates than 30-year mortgages. You'll pay more each month, but you'll save a lot on interest over the life of the loan.
• Negotiate: Don't be afraid to negotiate with lenders. If you get a better offer from another lender, let your current lender know. They might be willing to match or beat the offer.

Finding the right mortgage rate can be a challenge, but with a bit of research and preparation, you can save thousands of dollars over the life of your loan. Good luck!