States With Lowest Mortgage Rates Today – June 11, 2025

Looking for the best deal on a mortgage? As of today, June 11, 2025, the states with the lowest 30-year new purchase mortgage rates are New York, Colorado, California, Virginia, Connecticut, and New Jersey, closely followed by Florida and Texas. These states boast average rates ranging from 6.82% to 6.93%. Let's dive into why this is the case and what it means for you.

States With Lowest Mortgage Rates Today – June 11, 2025

Why Do Mortgage Rates Vary By State?

This isn't just some random occurrence – several factors contribute to these differences. As someone who's followed the mortgage market for years, I can tell you that it's rarely simple. Here's a breakdown of the key influences:

• Lender Presence: Not every bank or mortgage company operates in every state. The level of competition among lenders can significantly impact rates. If there are more lenders vying for your business, you're more likely to get a better deal.
• Credit Scores: Average credit scores vary state by state. States with higher average credit scores tend to see slightly better rates overall. It's all about perceived risk for the lender.
• Average Loan Size: The size of the average mortgage loan can also play a role. States with higher property values might see lenders adjusting rates accordingly.
• State Regulations: Each state has its own set of regulations governing the mortgage industry. These regulations can influence how lenders operate and, consequently, the rates they offer.
• Lender Risk Management: Ultimately, it boils down to how lenders manage risk. Some lenders might be more aggressive in certain markets, offering lower rates to attract more business.

The Cheapest Vs. The Most Expensive: A Tale of Two Economies

While some states are enjoying rates below 7%, others aren't so lucky. According to Investopedia's report, the states with the highest 30-year new purchase mortgage rates today are Alaska, West Virginia, Mississippi, Kansas, North Dakota, Arkansas, South Dakota, and Wyoming, averaging between 7.02% and 7.10%. That's a pretty significant difference, and it could impact your ability to afford a home in those states.

It's important to note that these are just averages. Your individual rate will depend on your unique financial situation.

National Mortgage Rate Trends: A Bird's Eye View

Let's take a step back and look at the bigger picture. According to Zillow, the national average for a 30-year new purchase mortgage currently sits at 6.96%. This is lower than the mid-May high of 7.15%, which is encouraging. Here's a quick summary of recent trends:

• Current Average (June 11, 2025): 6.96%
• Mid-May 2025 High: 7.15%
• March 2025 Low: 6.50%
• September (Two-Year) Low: 5.89%

As you can see, rates have been fluctuating quite a bit. It's a good reminder that the mortgage market is dynamic and influenced by many external forces. Staying informed is key!

A Quick Look at National Averages for Different Loan Types

Here's a table showing the current national averages for various loan types:

Loan Type	New Purchase Rate
30-Year Fixed	6.96%
FHA 30-Year Fixed	7.10%
15-Year Fixed	6.01%
Jumbo 30-Year Fixed	6.94%
5/6 ARM	7.15%

Understanding Teaser Rates

You've probably seen those incredibly low mortgage rates advertised online. Be careful! Those are often “teaser rates” designed to grab your attention. They might require you to:

• Pay points upfront (effectively pre-paying interest)
• Have an exceptionally high credit score
• Qualify for a smaller-than-typical loan

In reality, the rate you actually get will depend on your individual circumstances, including your credit score, income, debt-to-income ratio, and down payment. So, it's essential to compare real offers, not just be swayed by advertised rates.

How to Shop Around for the Best Mortgage Rate

• Check with local banks and credit unions: They sometimes have better deals than larger, national lenders.
• Obtain quotes from 3-5 different lenders: Don't settle for the first offer you get. Comparisons can save you money.
• Negotiate aggressively: Let lenders know that you are shopping around and are very willing to move on to the next competitive lender if they can't compete.
• Understand all the fees involved: Don't just focus on the interest rate. Look at the total cost of the mortgage, including origination fees, appraisal fees, and other closing costs.

Decoding the Mortgage Payment Puzzle

A mortgage payment is more than just principal and interest. It also includes:

• Principal: The amount you borrow
• Interest: The cost of borrowing the money
• Property Taxes: Taxes levied by your local government
• Homeowners Insurance: Covers damage to your home

Use a mortgage calculator to estimate your monthly payment based on different loan scenarios.

Mortgage Calculator Example

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

Estimated Monthly Payment: $2,649.04/month

Breakdown:

• Principal & Interest: $2,264.38
• Property Taxes: $256.67
• Homeowners Insurance: $128.00
• Mortgage Interest*: $463,176.16
• Total Mortgage Paid*: $815,176.16

The Forces Behind Mortgage Rate Fluctuations

Understanding what causes mortgage rates to rise or fall can help you make informed decisions about when to buy or refinance. Here are the main factors:

• The Bond Market: Mortgage rates tend to follow the movement of 10-year Treasury yields. Basically, if bond yields rise, mortgage rates often follow suit, and vice versa.
• The Federal Reserve (The Fed): The Federal Reserve's monetary policy plays a significant role. Actions like buying bonds or adjusting the federal funds rate can indirectly influence mortgage rates.
• Competition Among Lenders: When lenders are competing fiercely for business, they might lower rates to attract borrowers.
• Inflation: High inflation can push rates higher as lenders demand a greater return to offset potential losses in purchasing power.

The Bottom Line

Navigating the mortgage market can feel overwhelming, but knowledge is power. By understanding the factors that influence mortgage rates and shopping around for the best deal, you can increase your chances of securing an affordable home loan. Keep an eye on the states with the lowest mortgage rates and be prepared to act when the time is right.