States With Lowest Mortgage Rates Today – May, 29 2025

Hunting for the best mortgage rate can feel like searching for buried treasure. As of today, May 29, 2025, the states offering the lowest 30-year new purchase mortgage rates are: New York, California, New Jersey, Georgia, Hawaii, North Carolina, Texas, and Washington. These states boast average rates ranging from 6.87% to 7.05%. Finding the best rate for your dream home could potentially save you thousands of dollars over the life of your loan, so read on to find out more.

States With Lowest Mortgage Rates Today – May, 29 2025

Why Mortgage Rates Vary So Much

It's something I've always found fascinating: why can two people, applying for seemingly similar mortgages, end up with wildly different interest rates? The answer lies in a complex interplay of factors, from the state you're in to the lender's risk assessment.

• Location, Location, Location: Mortgage rates aren't uniform across the country. Different lenders have different operating regions, and the local economic climate impacts their risk assessments.
• State-Level Variations: Each state has its own unique set of regulations, average credit scores, and typical loan sizes. These factors all influence the rates lenders are willing to offer.
• Lender's Risk Appetite: Each lender employs its own risk management strategies. A lender that wants to be more aggressive may offer lower rates to attract more business, while a more conservative lender might charge a premium.
• Your Financial Profile: Your credit score, income, debt-to-income ratio, and the size of your down payment all play a significant role in determining your mortgage rate.

The States Where You'll Find The Best Mortgage Rates

As I mentioned earlier, the states currently enjoying the lowest average 30-year mortgage rates are:

• New York
• California
• New Jersey
• Georgia
• Hawaii
• North Carolina
• Texas
• Washington

These states have average rates that fall between 6.87% and 7.05%.

The States Where Mortgage Rates Are Higher

On the other end of the spectrum, the states with the highest average 30-year mortgage rates today are:

• Alaska
• West Virginia
• Nevada
• Maine
• North Dakota
• South Dakota
• Wyoming
• Nebraska
• Washington, D.C.

The average rates in these areas range from 7.14% to 7.20%.

A Word of Caution About “Teaser Rates”

You've probably seen those unbelievably low mortgage rates advertised online. Be careful! These are often “teaser rates” designed to grab your attention. They might require you to pay points upfront, have an exceptionally high credit score, or be based on a much smaller loan amount than you need. The rate you actually qualify for will depend on your unique financial situation.

National Mortgage Rate Trends

Let's take a step back and look at the bigger picture. Here's what's happening with national average mortgage rates:

• 30-Year Fixed-Rate Mortgages: The current national average is 7.08% (Zillow). This is an improvement from last week's 7.15%, but still higher than the 6.50% we saw in March of 2025.
• Historical Context: Remember back in September 2024, when 30-year rates hit a two-year low of 5.89%? Those days seem like a distant memory now!

Here's a quick rundown of national averages for different loan types:

Loan Type	New Purchase Rate
30-Year Fixed	7.08%
FHA 30-Year Fixed	7.37%
15-Year Fixed	6.08%
Jumbo 30-Year Fixed	7.01%
5/6 ARM	7.22%

Calculate Your Mortgage Payment

Understanding how much you can afford each month is crucial before diving into the homebuying process. There are lots of free mortgage calculators online, like the one I use that considers:

• Home Price
• Down Payment
• Loan Term
• Property Taxes
• Homeowners Insurance
• Interest Rate

Let's say you're looking at a $440,000 home with a 20% down payment ($88,000) and a 30-year loan at a 6.67% APR. Your estimated monthly payment would be around $2,649.04. This includes principal, interest, property taxes, and homeowners insurance.

What Influences Mortgage Rates?

If you are like me, you are probably wondering what factors influence and decide mortgage rates. Mortgage rates are a complex beast, influenced by a range of economic factors. Here are some of the key drivers:

• Bond Market: Mortgage rates often track the performance of the bond market, especially the 10-year Treasury yield.
• Federal Reserve Policy: The Fed's monetary policy, including its bond-buying programs and decisions about the federal funds rate, significantly impacts mortgage rates.
• Competition Among Lenders: Competition in the mortgage market can drive rates down as lenders vie for your business.

The Fed's Role in Recent Rate Fluctuations

The Federal Reserve's actions have had a significant impact on mortgage rates in recent years. In response to the economic pressures of the pandemic, the Fed initially bought billions of dollars in bonds, keeping rates low. However, starting in November 2021, the Fed began to taper its bond purchases.

Then, in 2022 and 2023, the Fed aggressively raised the federal funds rate to combat high inflation. While the fed funds rate doesn't directly control mortgage rates, its indirect influence led to a dramatic increase in mortgage rates.

As of September 2025, 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.

My Advice: Shop Around and Be Prepared

Buying a home is a huge financial decision. Here's my take on getting the best possible mortgage rate:

1. Shop Around: Don't settle for the first rate you're offered. Get quotes from multiple lenders to see who can give you the best deal.
2. Improve Your Credit Score: A higher credit score translates to a lower interest rate. Work on paying down debt and correcting any errors on your credit report.
3. Save for a Larger Down Payment: A bigger down payment reduces the lender's risk and can help you qualify for a lower rate.
4. Get Pre-Approved: Getting pre-approved for a mortgage gives you a better understanding of how much you can borrow and strengthens your negotiating position when you find a home.
5. Consider Different Loan Types: Explore different mortgage options, such as fixed-rate mortgages, adjustable-rate mortgages, and government-backed loans (like FHA or VA loans), to see which one best fits your needs.

Final Thoughts

While national trends provide a general overview, the best mortgage rate for you depends on your individual circumstances and the specific lender you choose. By doing your research, shopping around, and being prepared, you can increase your chances of securing a favorable rate and achieving your homeownership goals. Good luck with your home buying journey!