U.S. States With Lowest Mortgage Rates Today – June 16, 2025

If you're hunting for a home or considering refinancing, you're probably wondering where you can snag the best deal. As of today, June 16, 2025, the states with the lowest 30-year new purchase mortgage rates are New York, Connecticut, New Jersey, Colorado, Massachusetts, California, and Washington, where rates average between 6.75% and 6.87%.

Conversely, the states with the highest mortgage rates are Alaska, West Virginia, Mississippi, Montana, Vermont, Wyoming, Kansas, and Maine, posting averages between 6.98% and 7.05%.

But why is there such a difference from state to state? Let's find out!

U.S. States With Lowest Mortgage Rates Today – June 16, 2025

Why State-Specific Mortgage Rates Matter

Mortgage rates aren't set in stone at the national level. Instead, they wiggle and wobble due to a heap of factors that can vary widely from state to state. Think of it like this – each state is its own little mortgage ecosystem.

Here’s the breakdown of why the state you live in plays a huge role in your mortgage rate:

• Lender Presence: Not all lenders operate everywhere. Some might focus regionally, leading to less competition in some states and more in others. More competition typically means better rates for you.
• Credit Scores: States with higher average credit scores might see slightly better rates overall. Even a small bump in the average credit score can have a noticeable impact on the rates available to borrowers.
• Average Loan Size: The average loan amount also matters. In pricier states (like California), where loan sizes are bigger, lenders might adjust rates to reflect perceived risk or different market dynamics.
• State Regulations: Each state has its own set of rules and regulations governing the mortgage industry. These rules can affect things like closing costs, lender fees, and even how quickly a lender can foreclose if something goes wrong. All of these factors play a role in figuring how lenders can offer loans.
• Risk Management Strategies: Different lenders have different ways of assessing and managing risk. Some might be more comfortable lending in certain states than others, based on a variety of factors.
• Shopping Around is Your Best Bet: The rates you see printed in an article like this are good for insights, not gospel. Because rates can change so much from lender to lender it’s necessary to do your research.

It all boils down to this: mortgage rates are a local affair! That's why it’s crucial to shop around and compare rates from various lenders in your state to find the best deal for you.

Decoding the Data (and Avoiding the Traps)

Okay, so you're looking at these rate numbers. It's tempting to jump on the lowest one, right? Before you do, let's talk about teaser rates. You know, those super-low rates you see plastered all over the internet? Rates that are published here “won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive.”

They're like the clickbait of the mortgage world. Here's what you need to know:

• Points, Points, Points: Often, those rock-bottom rates come with points. A point is essentially a fee you pay upfront to get a lower interest rate over the life of the loan. It's like buying down your rate. Think about it as paying for the lower advertised rate. This can make sense sometimes, but you need to do the math to see if it’s worth it in the long run.
• Perfect Borrower Profile: Those rates are usually based on perfect borrowers: someone with a credit score so high it practically glows, a huge down payment, and a squeaky-clean financial history. If that's not you (and let's be honest, it's not most of us), your rate will likely be different.
• Small Loans Only: Sometimes, teaser rates apply only to smaller-than-average loans. If you're buying a McMansion, that rate might not be available to you.

So, take those advertised rates with a grain of salt. Focus on getting a personalized quote based on your financial situation.

National Mortgage Rate Trends: What's Going On?

While state-specific rates are important, it's also good to have a handle on the big picture. What's happening with mortgage rates at the national level? According to Investopedia, “rates on 30-year new purchase mortgages dropped for four consecutive days last week before inching up a bit Friday. Now averaging 6.91%, 30-year rates are still down from mid-May, when the flagship average climbed to a one-year high of 7.15%.” Here are the recent historical trends:

• Recent Dip: Rates have been bouncing around this year, but there are some encouraging signs. As of today, rates are coming down from their recent highs.
• Earlier Lows: Earlier this year, in March, we saw 30-year rates hit their lowest average of 2025 at 6.50%. That’s the kind of movement that makes home buyers excited.
• 2024 Flashback: In September 2024, we even saw rates dip to a two-year low of 5.89%. That’s a pleasant memory for a lot of people.

Here's a quick look at the national averages for different loan types, according to the Zillow Mortgage API:

Loan Type	New Purchase Rate
30-Year Fixed	6.91%
FHA 30-Year Fixed	6.98%
15-Year Fixed	5.96%
Jumbo 30-Year Fixed	6.90%
5/6 ARM	7.11%

Keep an Eye on the Economy: Mortgage rates don't exist in a bubble. They're heavily influenced by what's going on in the wide world of the economy! If inflation rises, then mortgage rates will likely follow suit.

Crunching the Numbers: What Can You Afford?

Okay, let's get practical. Knowing the rates is one thing, but how does it translate into actual monthly payments? Let's punch some numbers using an example.

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

Using mortgage calculator, this would result in a monthly payment of about $2,649.04. Here's the breakdown:

• Principal & Interest: $2,264.38
• Property Taxes: $256.67
• Homeowners Insurance: $128.00

That's just an example. Remember, your actual payment will depend on things like your local property taxes, homeowners insurance premiums, and any other fees associated with the loan. Use a mortgage calculator and get personalized estimates!

The Fed Factor: What Will They Do Next?

One of the biggest drivers of mortgage rates is the Federal Reserve (the Fed). This group of monetary masterminds sets the tone for the entire economy. It’s an important factor that influences average mortgage rates. Here are some relevant details:

• Bond Buying: For much of 2021, the Fed was buying bonds like crazy to keep the economy afloat during the pandemic. This kept mortgage rates artificially low. But then…
• Tapering: Starting in late 2021, the Fed started slowing down its bond purchases. This led to rates starting to rise.
• Rate Hikes: Then, to combat inflation, the Fed started raising the federal funds rate aggressively throughout 2022 and 2023. This indirectly pushed mortgage rates even higher.

The Fed took a breather in late 2023, and even cut rates slightly. However, in early 2025, they've been hesitant to cut rates further. According to Investopedia, “For its third meeting of the new year, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months.”

What does this mean for you? Well, it means uncertainty. The Fed's next move is anyone's best guess, and their decisions will have a big impact on where mortgage rates go.

The Million-Dollar Question: Should You Buy Now?

This is the question everyone wants answered! Unfortunately, there's no simple yes or no. It depends entirely on your situation. Here are some of the pros and cons:

Pros:

• Rates Might Go Higher: If rates start to rise significantly, you might be priced out of the market.
• Building Equity: Owning a home allows you to build equity over time, essentially forcing you to save.
• Personal Reasons: Maybe you're tired of renting, need more space, or want to put down roots in a specific community.

Cons:

• Rates Could Go Lower: If you buy now and rates fall later, you might feel like you missed out on a better deal.
• Other Expenses: Owning a home comes with a ton of extra expenses, like property taxes, insurance, and maintenance.
• Market Conditions: Are homes overpriced in your area? Is there a risk of the market cooling down?

Ultimately, the best time to buy is when you're ready. Don't try to time the market. Focus on finding a home you love and can afford, regardless of what the rates are doing.

Final Thoughts – Your Home-Buying Journey

Navigating the mortgage world can feel overwhelming, but it doesn't have to be! It’s useful to read articles like these to get a better handle on mortgage rates.

Keep these key takeaways in mind:

• Shop Around: Always, always, always compare rates from multiple lenders.
• Look Beyond the Teaser Rates: Focus on getting personalized quotes.
• Do Your Math: Use a mortgage calculator to estimate your monthly payments.
• Factor in All Expenses: Don't forget about property taxes, insurance, and other costs.
• Don't Rush: Take your time and make a decision that's right for you.

Buying a home is one of the biggest financial decisions you'll ever make. Don't be afraid to ask questions, seek advice from experts, and take your time to find the perfect place for you. Good luck!