States With Lowest Mortgage Rates Today – June 9, 2025

If you're looking for the states with the lowest mortgage rates today, June 9, 2025, you've come to the right place. Right now, New York, Massachusetts, Washington, Colorado, Virginia, California, Connecticut, and North Carolina are offering some of the cheapest 30-year new purchase mortgage rates, with averages ranging from 6.83% to 6.99%. So, if you're house hunting, you might want to start your search in those states!

States With Lowest Mortgage Rates Today – June 9, 2025

Buying a home is a huge decision, and I know firsthand how stressful it can be. I remember when I bought my first place – all the paperwork, the inspections, and, of course, figuring out the mortgage. One of the biggest factors that can impact your monthly payment and overall cost is the interest rate. And those rates can vary quite a bit depending on where you live.

Why Do Mortgage Rates Vary by State?

It's not just random chance that makes mortgage rates different across state lines. Several factors contribute to these variations. Here's a breakdown:

• Lender Presence: Not all lenders operate in every part of the country. This means that certain regions might have less competition, which can drive rates up.
• Credit Score Averages: States with higher average credit scores might see lower rates because lenders view borrowers as less risky.
• Average Loan Size: Differences in property values and loan sizes can influence rates. Larger loans might come with slightly different terms.
• State-Specific Regulations: Different states have different rules and regulations regarding mortgages, which can affect lenders' costs and, ultimately, the rates they offer.
• Risk Management Strategies: Each lender has its own way of assessing and managing risk, and this can translate into variations in the rates they charge.

Mortgage rates vary by the state where they originate. Different lenders operate in different regions, and rates can be influenced by state-level variations in credit score, average loan size, and regulations. Lenders also have varying risk management strategies that influence the rates they offer.

June 9, 2025: A Snapshot of Mortgage Rates Across the US

Let's dive deeper into the data and see which states are offering the best and worst deals on 30-year mortgages right now.

The States with the Lowest Mortgage Rates:

According to Investopedia, here are the states where you'll find the most affordable 30-year new purchase mortgage rates as of today:

• New York
• Massachusetts
• Washington
• Colorado
• Virginia
• California
• Connecticut
• North Carolina

These states share average mortgage rates ranging from 6.83% to 6.99%.

The States with the Highest Mortgage Rates:

On the other end of the spectrum, these states currently have the highest 30-year mortgage rates:

• Alaska
• Mississippi
• West Virginia
• Delaware
• Kansas
• Oklahoma
• Ohio
• Wisconsin

Here, the average rates hover between 7.06% and 7.16%.

National Mortgage Rate Trends

It's helpful to keep an eye on national averages to put these state-specific rates into context:

• Today's (June 9, 2025) rate for 30-year new purchase mortgages: jumped 9 basis points to 7.02%.

Breaking it Down (National Averages):

Here is a table showing the national average rates for various types of mortgages:

Loan Type	New Purchase Rate
30-Year Fixed	7.02%
FHA 30-Year Fixed	7.13%
15-Year Fixed	6.08%
Jumbo 30-Year Fixed	6.97%
5/6 ARM	7.36%

Source: Zillow

Important Considerations

Keep in mind that these are average rates. The rate you'll actually qualify for depends on your individual financial situation:

• Credit Score: A higher credit score generally means a lower rate.
• Income: Lenders want to see that you have a stable income to repay the loan.
• Down Payment: A larger down payment can reduce your risk and potentially lower your rate.
• Debt-to-Income Ratio (DTI): This is the amount of your monthly income that goes toward paying debts. A lower DTI is preferable.
• Type of Loan: Different loan types (e.g., fixed-rate, adjustable-rate, FHA, VA) come with varying rates and terms.

Don't Fall for Teaser Rates!

You've probably seen those super-low rates advertised online. Those are often “teaser rates,” designed to grab your attention. Here's what to watch out for:

• Paying Points: Some teaser rates require you to pay points upfront, which are fees that effectively increase the cost of your loan.
• Ultra-High Credit Scores: Those rates might only be available to borrowers with near-perfect credit.
• Smaller-Than-Typical Loans: Sometimes, the advertised rate is only for smaller loan amounts.

Always shop around and compare rates from multiple lenders. Don't settle for the first offer you receive!

Understanding Factors That Shape Mortgage Rates

Mortgage rates don't just appear out of thin air. They're influenced by several factors that are constantly in play:

• Bond Market: Specifically, the 10-year Treasury yield has a big impact. When Treasury yields rise, mortgage rates tend to follow suit.
• Federal Reserve (The Fed): The Fed's monetary policy plays a crucial role. Specifically, its actions related to buying bonds and funding government-backed mortgages can significantly affect rates.
• Competition: Competition among lenders and across different loan types can also influence rates.

Trying to pinpoint one single cause for rate fluctuations is nearly impossible because multiple forces are often at work simultaneously.

A Quick History Lesson In 2021 mortgage rates were relatively low because the fed was buying billions of dollars of bonds in response to the pandemic's economic pressures. However, in November 2021 The Fed began tapering its bond purchases , making sizable monthly reductions until reaching net zero in March 2022.Between that time and July 2023, the Fed aggressively raised the federal funds rate to fight decades-high inflation which has had a dramatic upward impact on mortgage rates over the last two years.

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 a first rate cut of 0.50 percentage points, and then followed that with quarter-point reductions in November and December. 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.

How to Calculate Your Mortgage Payment

Figuring out your potential monthly mortgage payment is essential for budgeting and determining how much you can afford. Here are the key factors involved:

• Home Price: The total cost of the property. (e.g. $440,000)
• Down Payment: The amount you pay upfront, expressed as a percentage of the home price. (e.g. 20%= $88,000)
• Loan Term: The length of time you have to repay the loan (e.g., 30 years).
• Annual Percentage Rate (APR): The interest rate you'll be charged. (e.g. 6.67%)
• Property Taxes: Annual taxes assessed on your property, typically divided into monthly payments.
• Homeowners Insurance: The cost of insuring your home against damage or loss, also usually paid monthly.

Using sample figures shown above , the monthly payment can be calculated as follows –

Your monthly mortgage payment: $2,649.04/month for 30 years

Principal & Interest: $2,264.38

Property Taxes: $256.67

Homeowners Insurance: $128.00

Mortgage Size: $352,000.00

Mortgage Interest: $463,176.16

Total Mortgage Paid: $815,176.16

Note: It's essential to use a mortgage calculator to get an accurate estimate. Many online tools (like Zillow's mortgage calculator) can help you crunch the numbers.

My Final Two Cents

Navigating the world of mortgages can be daunting, but knowledge is power. By understanding the factors that influence rates and shopping around diligently, you can find the best possible deal for your situation. Remember to factor in all the costs associated with buying a home, not just the mortgage payment itself.

And finally, don't be afraid to ask questions! Talk to multiple lenders, real estate agents, and financial advisors to get a clear picture of your options so that you can make an informed decision that works for you in the long run.