U.S. States With Lowest Mortgage Rates Today – June 17, 2025

Looking for the best deal on a mortgage? You've come to the right place. As of today, June 17, 2025, the U.S. states with the lowest mortgage rates for a 30-year new purchase are New York, Florida, Colorado, New Jersey, California, Washington, and Connecticut. In these states, you can find average rates between 6.81% and 6.91%.

U.S. States With Lowest Mortgage Rates Today – June 17, 2025

Why Do Mortgage Rates Vary by State?

You might wonder why mortgage rates aren't the same across the entire country. The truth is, several factors contribute to these state-by-state differences. Variation happens due to these influences:

• Different Lenders in Different Regions: Not all lenders operate in every state. This means the level of competition can vary, influencing the rates each lender offers.
• State-Level Credit Score Variations: The average credit score within a state can impact rates. States with higher average scores might see slightly better rates.
• Average Loan Size: The typical loan amount requested in a state can also play a role.
• State Regulations: Mortgage regulations can differ from state to state, affecting the costs for lenders and ultimately the rates they offer.
• Lender Risk Management Strategies: Each lender has its unique approach to assessing and managing risk, which impacts the rates they’re willing to offer.

The Winners: States with the Lowest Mortgage Rates Today

Let's dive into the states where you'll find the most attractive mortgage rates right now. According to data by Investopedia, these are the stars of the show as of June 17, 2025:

• New York: Average rates between 6.81% and 6.91%.
• Florida: Average rates between 6.81% and 6.91%.
• Colorado: Average rates between 6.81% and 6.91%.
• New Jersey: Average rates between 6.81% and 6.91%.
• California: Average rates between 6.81% and 6.91%.
• Washington: Average rates between 6.81% and 6.91%.
• Connecticut: Average rates between 6.81% and 6.91%.

Heads Up: States With Higher Mortgage Rates

On the other end of the spectrum, some states are currently experiencing higher mortgage rates. If you're planning to buy a home in these areas, it's especially important to shop around for the best deal. These are the states at the higher end:

• Alaska: Average rates between 6.99% and 7.08%
• West Virginia: Average rates between 6.99% and 7.08%
• Mississippi: Average rates between 6.99% and 7.08%
• North Dakota: Average rates between 6.99% and 7.08%
• Kansas: Average rates between 6.99% and 7.08%
• South Dakota: Average rates between 6.99% and 7.08%
• Wyoming: Average rates between 6.99% and 7.08%

National Averages: Where Do We Stand?

It's helpful to keep an eye on national average mortgage rates to put your state's rates into perspective. Here's a snapshot of the national averages as of today from Zillow:

• 30-Year Fixed (New Purchase): 6.93%
• FHA 30-Year Fixed: 7.42%
• 15-Year Fixed: 5.98%
• Jumbo 30-Year Fixed: 6.95%
• 5/6 ARM: 7.13%

Important: Don't Believe Everything You See Online

You've probably seen those super-low “teaser rates” advertised online. While they might look tempting, it's crucial to understand the fine print. These rates often come with catches like:

• Paying points upfront
• Requiring an exceptionally high credit score
• Being limited to very small loan amounts

Remember, the rate you actually qualify for will depend on your individual circumstances, including your credit score, income, debt-to-income ratio, and the size of your down payment.

Quick Tip: Always shop around! Don't settle for the first rate you're offered. Get quotes from multiple lenders to ensure you're getting the best possible deal.

How to Find the Best Mortgage Rate for You

Okay, so you know where the lowest rates generally are. But how do you make sure you get the best rate possible for your situation? Here's a breakdown:

1. Check Your Credit Score: Your credit score is a huge factor in determining your interest rate. The higher your score, the lower your rate will likely be. Get a copy of your credit report from all three major credit bureaus (Equifax, Experian, and TransUnion) and dispute any errors you find.
2. Save for a Larger Down Payment: A larger down payment reduces the lender's risk, often resulting in a lower interest rate. Aim for at least 20% if possible.
3. Shop Around for Lenders: Don't just go with the first lender you talk to. Get quotes from at least three different lenders to compare rates and fees. Online mortgage brokers can be a great way to compare multiple lenders at once.
4. Consider an ARM (Adjustable-Rate Mortgage): If you plan to move in a few years, an ARM might be a good option. These typically have lower initial interest rates than fixed-rate mortgages, but the rate can change over time.
5. Negotiate Fees: Don't be afraid to negotiate lender fees. Some fees are negotiable, so it's worth asking if the lender is willing to lower them.
6. Get Pre-Approved: Getting pre-approved for a mortgage shows sellers that you're a serious buyer and know how much you can borrow. It can also give you a stronger negotiating position.

A Quick Look at Mortgage Rate History and the Future

Mortgage rates are constantly in flux, influenced by a complex interplay of economic factors. It’s worth remembering where we've been recently:

• Mid-May 2025: Rates hit a one-year high of 7.15%.
• March 2025: Rates dipped to their lowest of the year at 6.50%.
• September (of a previous year): Rates hit a two-year low of 5.89%.

Understanding these trends can give you a bit of context when you're deciding when to lock in your rate.

Factors Influencing Mortgage Rates

What drives these fluctuations? A few key factors are always at play:

• The Bond Market: Mortgage rates often closely follow the yields on 10-year Treasury bonds.
• The Federal Reserve: The Fed's monetary policy, particularly its bond-buying programs and decisions about the federal funds rate, has a significant impact. Though the fed funds rate doesn't directly influence mortgage rates, they are closely linked,
• Competition Among Lenders: The level of competition in the mortgage industry can influence rates.

Mortgage Rate Volatility

It's tricky to pinpoint exactly why rates change on any given day, because all these factors can shift simultaneously. The Federal Reserve has indicated a more cautious approach to rate cuts in the coming months, after reducing rates in Q3 and Q4 of 2024 – and no changes happening in the new year of 2025 just yet. So we may see more rate pauses than cuts through the rest of 2025.

The Bottom Line:

Finding the best mortgage rate requires research, preparation, and a willingness to shop around. By understanding the factors that influence rates and taking steps to improve your credit and financial profile, you can increase your chances of securing a favorable deal. I wish you the best of luck in your home-buying journey!