States With Lowest Mortgage Rates Today – June 6, 2025

If you're looking for the states with the lowest mortgage rates today, June 6, 2025, then the answer is: New York, California, Massachusetts, South Carolina, Florida, New Jersey, New Hampshire, South Dakota, and Washington. These nine states have the cheapest 30-year new purchase mortgage rates, as reported by Investopedia, registering averages between 6.75% and 6.91%. Let's dive deeper into understanding why these rates vary from state to state and what factors you should consider before making your home-buying decision.

States With Lowest Mortgage Rates Today – June 6, 2025

Why Do Mortgage Rates Vary by State?

It's a question I get asked all the time: “Why are mortgage rates different depending on where I live?” The truth is that several factors can influence these variations. Here are some of the common reasons:

• Lender Presence and Competition: Not all mortgage lenders operate in every state. The level of competition among lenders in a given area can significantly impact rates. The more lenders vying for your business, the more likely you are to find a better deal.
• State-Level Regulations: Mortgage regulations vary from state to state. These differences can affect the costs and risks associated with lending, ultimately influencing the rates offered.
• Credit Score Averages: The average credit score in a state can give lenders an idea about the overall risk profile of borrowers in that area. States with higher average credit scores might see slightly lower rates.
• Average Loan Size: The average loan amount also matters. Larger loan amounts may carry slightly different rates compared to smaller loans due to market demand and risk considerations.
• Risk Management Strategies: Every lender assesses risk differently. Some might be more aggressive in offering lower rates to attract customers, while others may prioritize profitability and maintain higher rates.

A Look at the States with the Lowest and Highest Rates on June 6, 2025

Let’s take a closer look at the states with the most favorable mortgage rates and those with the least favorable rates, as of today:

• States with Cheapest 30-Year Mortgage Rates:
  • New York
  • California
  • Massachusetts
  • South Carolina
  • Florida
  • New Jersey
  • New Hampshire
  • South Dakota
  • Washington

Rates in these states range between 6.75% and 6.91%.

• States with Most Expensive 30-Year Mortgage Rates:
  • Alaska
  • West Virginia
  • Iowa
  • Kansas
  • Mississippi
  • North Dakota
  • Maine
  • Oklahoma
  • Vermont
  • Wyoming

Rates in these states range between 6.98% and 7.10%.

National Mortgage Rate Trends: What's Going On?

As of June 6, 2025, the national average for a 30-year new purchase mortgage sits at 6.93%. This is a slight increase after a couple of weeks of decline from a recent yearly high of 7.15%. To put things in perspective:

• In March 2025, the average rate was 6.50%, the lowest we’ve seen so far this year.
• Back in September, we even saw a two-year low of 5.89%.

National Averages of Lender's Best Mortgage Rates

Here's a quick overview of the national average rates for different types of mortgages:

Loan Type	New Purchase
30-Year Fixed	6.93%
FHA 30-Year Fixed	7.37%
15-Year Fixed	5.96%
Jumbo 30-Year Fixed	6.94%
5/6 ARM	7.29%

Data: Zillow

Understanding Those “Teaser” Rates You See Online

It's important to be aware of the difference between the average rates I’m sharing and those eye-catching “teaser” rates you often see advertised. These teaser rates are usually based on very specific scenarios or may involve paying points upfront, having a super-high credit score, or applying for a smaller-than-typical loan.

Remember, your actual rate will depend on your unique financial situation, including your credit score, income, debt-to-income ratio, and the size of your down payment. Always shop around with multiple lenders to find the best deal for you!

How Mortgage Rates are Determined

Mortgage rates don't just appear out of thin air. Several factors work together to influence them:

• The Bond Market: The bond market has significant influence. In particular, keep a close watch on the yield of the 10-year Treasury bond. Mortgage rates often follow the trend of these yields.
• The Federal Reserve (The Fed): The Federal Reserve's monetary policy plays a big role. The Fed influences interest rates through various actions, impacting the mortgage market.
• Lender Competition: The level of competition among mortgage lenders is a key factor. When many lenders are competing for your business, you're more likely to score a lower rate.
• Loan Type: Different types of mortgages come with unique rate structures. Fixed-rate mortgages offer predictability, while adjustable-rate mortgages (ARMs) can start lower but fluctuate over time.

A Little History: Recent Fed Rate Changes

To truly understand the current state of mortgage rates, it's helpful to look back at recent actions by the Federal Reserve. In response to the economic pressures of the pandemic, the Fed engaged in large-scale bond-buying, which helped keep mortgage rates relatively low for much of 2021.

However, starting in November 2021, the Fed began to taper its bond purchases which was reduced to zero by March, 2022. Then, between that time and July 2023, the Fed aggressively raised the federal funds rate to combat inflation. This is a benchmark interest rate that banks charge one another for overnight lending.

While the federal funds rate doesn't directly determine mortgage rates, it has a pronounced effect. The rapidity and magnitude of the Fed's rate hikes significantly impacted mortgage rates during that period.

What's Happened Since and What to Expect?

The Fed maintained the federal funds rate at its peak level for almost 14 months, beginning in July 2023. But in September, the central bank announced its first rate cut of 0.50 percentage points, and then followed that with smaller reductions in later months.

However, at its first meeting of this year, 2025, the Fed opted to hold rates steady – and it's entirely possible that the central bank may not make another rate cut for months. With eight scheduled rate-setting meetings per year, we could see multiple rate-hold announcements in 2025.

How to Get the Best Rate for You

So, what can you do to secure the best mortgage rate possible? Here are some tried-and-true tips:

• Boost Your Credit Score: This is one of the most important factors. Pay your bills on time and keep your credit utilization low.
• Save for a Larger Down Payment: A larger down payment reduces the lender's risk and can lead to a lower interest rate.
• Shop Around: Don't settle for the first offer you receive. Get quotes from multiple lenders, including banks, credit unions, and online mortgage companies.
• Consider Different Loan Types: Explore different types of mortgages, such as fixed-rate, adjustable-rate, and government-backed loans (FHA, VA, USDA).
• Negotiate: Don't be afraid to negotiate with lenders. See if they're willing to match or beat a competitor's offer.
• Time the Market (Carefully): While it's impossible to predict exactly when rates will be at their lowest, keeping an eye on economic indicators and Federal Reserve announcements can help you time your purchase strategically.

A Final Thought:

Buying a home is a significant investment, and understanding mortgage rates is crucial. While today's rates might not be at their all-time lows, there are still opportunities to find affordable options and achieve your homeownership dreams. Don't be afraid to do your research, shop around, and seek advice from a qualified mortgage professional.