States With Lowest Mortgage Rates Today – June 12, 2025

Looking for the best mortgage rates? As of today, June 12, 2025, the states boasting the lowest 30-year new purchase mortgage rates are New York, Massachusetts, Colorado, California, New Jersey, Washington, Texas, Florida, and Virginia. These states currently register average rates between 6.79% and 6.89%. Figuring out where to buy a home is tough enough; finding the lowest mortgage rate shouldn't be!

States With Lowest Mortgage Rates Today – June 12, 2025

I know what you're thinking: “Why do rates even change from state to state?” Well, let's dive in and see what impacts the mortgage rates and which states have the best deals right now.

Why Mortgage Rates Differ by State

Mortgage rates aren't uniform across the United States. Several factors play a role in these geographic variations. Here are a couple of main reasons that could affect the rate:

• Lender Presence: Not all lenders operate in every state. The competitive landscape can change based on which lenders are actively trying to gain market share in a specific region. More competition often leads to lower rates.
• State-Level Regulations: Mortgage regulations can vary significantly from state to state. These regulations can affect the cost of doing business for lenders and, consequently, the rates they offer.
• Credit Score Averages: States with higher average credit scores might see slightly better rates, as lenders perceive borrowers as less risky.*
• Average Loan Size: The average size of mortgages can impact rates since bigger the amount more the risk involved. If a state has a trend for taking bigger loans, there could be a rise in rate of interest.
• Risk Management Strategies: Different lenders have varying approaches to risk. Some might be more aggressive in offering lower rates to attract borrowers, while others might be more conservative.

These variations can significantly impact what you will ultimately pay for your mortgage. It always pays to be informed!

The Best Bang for Your Buck: States With the Lowest Mortgage Rates

Alright, let's get down to brass tacks. According to Investopedia, as of today, here's the breakdown of the states offering the most attractive 30-year new purchase mortgage rates:

• New York: The Empire State is starting to look enticing.
• Massachusetts: Chowda' and low rates? Sounds like a good deal.
• Colorado: The Rocky Mountain High is in Mortgage rate here
• California: Surprisingly, the Golden State makes the cut.
• New Jersey: The Garden State is home to big savings on mortgages.
• Washington: Escape to the great Northwest.. and save some money doing so.
• Texas: Everything's bigger in Texas. Including savings, apparently.
• Florida: The Sunshine State continues to get brighter.
• Virginia: The Old Dominion lives up to its nickname.

These states are currently offering average rates between 6.79% and 6.89%. Now, keep in mind this is just a snapshot in time and factors such as market volatility impact on rate of interest, but it gives you a solid starting point for your research.

The Other Side of the Coin: States With Higher Mortgage Rates

On the flip side, some states are seeing less favorable mortgage rates today. These states might have a combination of the factors mentioned above, leading to higher borrowing costs. For June 12, 2025, the states with the highest 30-year new purchase mortgage rates include:

• Alaska: Maybe the cost of living up north is just higher in general.
• West Virginia: Rates are among the highest in the nation.
• Mississippi: Buyers should be aware of these high rates.
• North Dakota: High rates are hitting this wheat-growing region.
• Maine: Rates are less than ideal in this coastal state.
• Kansas: Mortgage rates are pretty expensive here.
• New Mexico: Rates are not favorable for new home purchases.
• South Dakota: Home buyers may want to think twice.
• Wyoming: Rates are sky high during this period.

These states are registering refinance averages between 6.99% and 7.08%. If you're in one of these states, don't despair! Shopping around and improving your credit score can still help you secure a better rate.

Decoding National Mortgage Rate Trends

It's not just about state-specific rates. The national mortgage rate scene plays a big role. As of today, June 12, 2025, the national average for a 30-year new purchase mortgage is around 6.91%.

We've seen some movement in recent months. 30-year rates had dropped every day this week, fully erasing last week's two-day surge. The rates also witnessed an all time high mid-May, when the flagship average climbed to a one-year high of 7.15%. However, things can change quickly!

Here's a quick look at how rates have fluctuated this year:

• March: 30-year rates hit their lowest average of 2025 at 6.50%.
• September (Previous Year): Rates plunged to a two-year low of 5.89%.

Understanding these trends can help you time your mortgage application strategically, but remember that trying to time the market perfectly is almost impossible.

To get a better picture, here are the national averages for different loan types, as provided by the Zillow:

Loan Type	New Purchase Rate
30-Year Fixed	6.91%
FHA 30-Year Fixed	7.03%
15-Year Fixed	5.98%
Jumbo 30-Year Fixed	6.90%
5/6 ARM	7.15%

What's Driving These Fluctuations?

So, what's behind these ups and downs in mortgage rates? It's a complex mix of factors, including:

• Bond Market: Mortgage rates often follow the trajectory of the bond market, especially the 10-year Treasury yield.
• Federal Reserve (The Fed): The Fed's monetary policy, particularly its bond-buying programs and decisions about the federal funds rate, can significantly impact mortgage rates.
• Lender Competition: Competition among lenders can drive rates down as they try to attract borrowers and stay more competitive.

Remember the period between November 2021 and July 2023 and the aggressive measure taken by the Fed to combat the inflation? The Fed decided to raise the interest rate upto 5.25 percentage points over the period of sixteen months.

Calculating Your Potential Mortgage Payment

Okay, enough with the macroeconomics. Let's get practical. How do you figure out what your monthly mortgage payment might look like? Check out this example:

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

Based on these figures, your estimated monthly payment would be around $2,649.04. Keep in mind this includes principal, interest, property taxes, and homeowners insurance. You will also need to consider things like Private Mortgage Insurance (PMI) if your down payment is less than 20%.

Don't forget that rates, insurance, and taxes are subject to change. Make sure you get the most updated information before making any decisions.

Shopping Around is Key

No matter what state you're in, shopping around for the best mortgage rate is an absolute must. Don't just take the first offer you get. Get quotes from multiple lenders and compare them carefully.

Here are a few tips for getting the best mortgage rate:

• Improve Your Credit Score: A higher credit score can qualify you for a lower rate.
• Save for a Larger Down Payment: Putting more money down can reduce the lender's risk and potentially lower your rate.
• Consider Different Loan Types: Explore options like adjustable-rate mortgages (ARMs) or government-backed loans (FHA, VA) to see if they offer better terms.
• Negotiate Fees: Don't be afraid to negotiate with lenders on fees like origination fees or points.

The Bottom Line

Mortgage rates are a moving target. While certain states currently offer lower rates, the overall market is constantly changing. By understanding the factors that influence rates and shopping around for the best deal, you can position yourself to save money on your home purchase. Staying informed is the key tool to crack the best mortgage options.