If you're anything like me, the thought of buying a home or even just keeping up with mortgage payments in today's economy can feel a little overwhelming. That's why when someone like Dave Ramsey, a guy who's built a career on giving straightforward financial advice, talks about the housing market, people tend to listen.

And recently, he's made a pretty significant prediction: major mortgage rate changes are likely on the horizon soon. In fact, Ramsey believes these changes, specifically a drop in rates, could be the key to unlocking a more active housing market. So, what exactly did he say, and more importantly, what does it mean for those of us dreaming of owning a home or looking to make our current mortgage more manageable? Let's dive in.

Dave Ramsey Predicts Mortgage Rates Will Drop Soon in 2025

Who is Dave Ramsey and Why Should We Care?

For those who might not be as familiar, Dave Ramsey is a personal finance guru. He's the author of several best-selling books, most notably The Total Money Makeover, and hosts the nationally syndicated The Ramsey Show. What I appreciate about Ramsey is his down-to-earth approach to money. He doesn't speak in complicated financial jargon; he tells it like it is.

Having navigated his own financial ups and downs, including a bankruptcy early in his career, he speaks from experience. He's built a massive following by offering practical, no-nonsense advice on getting out of debt, saving, and building wealth. When he talks about mortgages, people pay attention, especially because he often advocates for more conservative approaches like the 15-year fixed-rate mortgage.

Ramsey's Forecast: Lower Mortgage Rates Ahead

In a recent interview with TheStreet, Ramsey shared his prediction that mortgage rates will “probably fall.” This isn't just a casual hunch; he believes this potential decrease could be the spark that the current housing market needs to see a significant uptick in activity. While he didn't throw out specific numbers, he suggested that even a one to two percentage point drop could lead to what he called a “home buying frenzy” due to the pent-up demand that's been building up.

This prediction comes at a crucial time. We've seen mortgage rates climb quite a bit, which has understandably made many potential homebuyers hesitant. Ramsey's optimistic outlook is interesting because, while some experts are cautiously optimistic, others anticipate rates staying relatively high for a while longer. His focus on a potential near-term drop suggests he sees factors at play that could lead to improved affordability for buyers.

The Current Mortgage Rate Landscape (May 2025)

To put Ramsey's prediction into context, let's take a look at where mortgage rates stand right now, in May 2025.

• The average rate for a 30-year fixed mortgage is hovering around 6.8%. Sources like Freddie Mac reported it at 6.76% for the week ending May 8th, 2025, while Bankrate showed a slightly higher 6.91% for the same type of refinance.
• If you're considering a shorter term, the 15-year fixed-rate mortgage is averaging between 5.89% and 5.92%. This lower rate comes with higher monthly payments but saves you significantly on interest over the life of the loan, something Ramsey often emphasizes.
• For those looking to refinance a 30-year fixed mortgage, the average is around 6.91%, according to Bankrate.
• Even jumbo mortgages, for higher-priced homes, are sitting at about 6.80%.

It's worth remembering that these rates are down a bit from their peak of 7.79% in October 2023, but they're still considerably higher than the sub-3% rates we saw just a few years ago. This jump is a big reason why many people are feeling the pinch when it comes to buying or refinancing a home.

What Drives Mortgage Rates? A Look Under the Hood

Understanding why mortgage rates fluctuate is key to making sense of any predictions. Several factors play a significant role:

• Inflation: When the cost of goods and services rises (inflation), lenders often demand higher interest rates to ensure their returns don't lose purchasing power over time. Recent reports have highlighted that persistent inflation is a major reason why rates have remained elevated.
• Federal Reserve Policies: The Federal Reserve (the Fed) sets the federal funds rate, which is the rate banks charge each other for overnight borrowing. While this doesn't directly set mortgage rates, it significantly influences them. Even though the Fed cut rates a few times in 2024, mortgage rates haven't mirrored that decrease completely, indicating other market forces are at play.
• Economic Growth: A strong economy usually means more demand for credit, which can push interest rates higher. Conversely, if the economy slows down, rates might decrease to encourage borrowing and spending.
• Bond Market Yields: Mortgage rates tend to closely follow the yield on the 10-year Treasury note. This yield reflects investors' confidence in the economy and their expectations for future inflation.
• Global and Geopolitical Events: Things happening around the world, like trade disputes, fears of recession, and instability in financial markets, can also impact mortgage rates by affecting bond yields. For instance, recent tariff announcements have been cited as a factor influencing bond markets.

Because these factors are constantly shifting and interacting, predicting future mortgage rates with absolute certainty is incredibly difficult. Ramsey's prediction likely takes these dynamics into account, but ultimately reflects his belief that the scales will tip towards lower rates in the near future.

What Other Experts Are Saying

It's always a good idea to see how Ramsey's prediction aligns with what other experts in the field are saying. Here's a snapshot of some forecasts:

• The National Association of Home Builders (NAHB) projects the average 30-year fixed-rate mortgage to be around 6.62% by the end of 2025 and slightly above 6% by the end of 2026.
• Analysts at U.S. News anticipate rates to stay in the mid-6% range throughout 2025 and 2026, citing ongoing economic uncertainty and a cautious approach from the Federal Reserve.
• Both Freddie Mac and the Mortgage Bankers Association (MBA) are also forecasting a gradual decline, with rates stabilizing around 6.5% by late 2025.

While these projections generally point towards a downward trend, they seem a bit more measured in their optimism compared to Ramsey's suggestion of a potential “frenzy.” Most experts agree that a return to the very low rates of the early 2020s is unlikely, a point Ramsey himself has acknowledged.

Potential Ripple Effects: How Lower Rates Could Impact You and the Housing Market

If Ramsey's prediction, or even the more conservative expert forecasts, come to pass, we could see some significant effects on both homebuyers and the broader housing market:

• Lower Monthly Payments: Even a small drop in interest rates can make a big difference in your monthly mortgage payment. For example, if the rate on a $300,000 30-year fixed mortgage drops from 6.8% to 6%, the monthly payment could decrease by around $157. Over the life of the loan, that adds up to significant savings – over $56,000 in interest! This increased affordability could bring more people into the market.
• Increased Buying Power: Lower rates mean you can afford to borrow more money for the same monthly payment. This could open up options for buyers to consider larger homes or homes in more desirable locations.
• Refinancing Opportunities: For current homeowners with mortgages at higher interest rates, a drop could present an opportunity to refinance and secure a lower rate. This could reduce their monthly payments or allow them to shorten their loan term, saving them money on interest in the long run.
• Market Dynamics: As more buyers enter the market due to improved affordability, we could see increased competition for available homes. Ramsey believes that this strong demand will likely keep home prices stable or even push them higher.

However, it's important to remember that the housing market faces other challenges. Limited inventory and home prices that have risen faster than wages are still significant hurdles. The fact that only 33% of 27-year-olds own homes today, compared to 40% of baby boomers at the same age, underscores the affordability issues many face. While lower rates would be a welcome development, they need to be considered alongside these existing market realities.

Ramsey's Advice for Navigating the Current Market

Regardless of when and how much mortgage rates might change, Dave Ramsey's advice for homebuyers remains consistent: don't try to time the market. He emphasizes that trying to predict the absolute lowest point for rates is a risky game. Instead, he advises purchasing a home when you are truly financially ready.

For Ramsey, being financially ready means:

• Being debt-free (excluding the mortgage itself).
• Having a 3–6 month emergency fund in place.
• Opting for a 15-year fixed-rate mortgage where the monthly payment, including taxes and insurance, doesn't exceed 25% of your take-home pay.

He is a strong advocate for the 15-year mortgage over the traditional 30-year term, highlighting the massive amount of interest you can save over the shorter loan period. For those considering refinancing, his advice is to carefully evaluate whether the lower interest rate and potentially shorter term justify the associated closing costs.

Final Thoughts: Staying Informed in a Changing Landscape

Dave Ramsey's prediction of upcoming mortgage rate changes offers a beacon of hope for a housing market that has felt out of reach for many. While the exact timing and extent of these changes remain to be seen, his forecast aligns with a general expectation among experts for a gradual decline in rates. For those of us navigating the complexities of buying a home or managing a mortgage, staying informed about these trends and understanding the underlying economic factors is crucial. Ultimately, Ramsey's core advice – to be financially prepared and make wise, long-term decisions – remains timeless, no matter where mortgage rates go.

Are you dreaming of owning a home but getting bogged down by the complexities of mortgage rates? You're not alone! It can feel like deciphering a secret code, especially when those rates fluctuate like the weather. As of Thursady, the states boasting the cheapest 30-year new purchase mortgage rates are New Jersey, New York, California, North Carolina, Georgia, Maine, Texas, and Wisconsin, with averages hovering between 6.78% and 6.83%. Let’s dive into why these rates vary and what it means for you.

Mortgage Rates Today: The States Offering Lowest Rates

Why Do Mortgage Rates Differ by State?

It’s a fair question! Unlike, say, the price of a gallon of gas, mortgage rates aren't uniform across the country. Several factors contribute to these variations:

• Lender Presence: Not all lenders operate in every state. The level of competition among lenders in a given state can influence mortgage rates. More competition often translates to better deals for borrowers.
• Credit Score Averages: States with higher average credit scores might see slightly lower rates, as lenders perceive lower risk.
• Average Loan Size: The typical loan amount requested in a state can also play a role. Larger loan sizes might sometimes come with slightly different rates.
• State Regulations: Each state has its own set of regulations for the mortgage industry. These regulations can impact the cost of doing business for lenders, which can then be reflected in the rates they offer.
• Risk Management: Lenders have different methods of risk management that can influence the rates they offer.

It is important to understand these factors before buying a home of your own and getting a mortgage.

States with the Lowest Rates:

According to Investopedia's report and Zillow's data, these states offer the most attractive 30-year new purchase mortgage rates:

State	Rate (30-Year Fixed)
New Jersey	6.78%
New York	6.79%
California	6.80%
North Carolina	6.81%
Georgia	6.81%
Maine	6.82%
Texas	6.82%
Wisconsin	6.83%

States with the Highest Rates:

State	Rate (30-Year Fixed)
West Virginia	6.92%
Alaska	6.93%
Hawaii	6.94%
Iowa	6.94%
Nebraska	6.95%
New Mexico	6.95%
Washington, D.C.	6.96%

National Mortgage Rate Trends: A Broader View

While knowing the state-specific rates is helpful, it's equally important to understand the overall mortgage rate climate. As of today, the national average for a 30-year fixed-rate mortgage is 6.86%. While this is lower than the one-year high of 7.15% we saw in May 2025, it's still higher than the 6.50% we saw in March of this year. Remember those sweet rates of 5.89% we experienced back in September 2024? Those feel like a distant memory, don’t they?

Here’s a quick snapshot of national average mortgage rates for different loan types:

• 30-Year Fixed: 6.86%
• FHA 30-Year Fixed: 7.55%
• 15-Year Fixed: 5.89%
• Jumbo 30-Year Fixed: 6.75%
• 5/6 ARM: 7.35%

ARM – Adjustable Rate Mortgage

What’s Driving Mortgage Rate Changes?

If you are wondering about the factors that affect mortgage rates, here is a list:

• The Bond Market: Keep an eye on the 10-year Treasury yield. It's a key indicator, as mortgage rates often track its movements.
• The Federal Reserve (The Fed): The Fed plays a huge role through its monetary policy. Their actions, especially regarding bond buying and rates impact mortgage rates.
• Lender Competition: The more lenders competing for your business, the better chance you have of getting a lower rate.

In 2021, the Fed's bond-buying kept rates down. But as they reduced these purchases and raised rates to fight inflation in 2022 and 2023, mortgage rates climbed.

The Federal Reserve's Game Plan: 2024-2025

The Fed's moves are crucial for understanding where mortgage rates are headed.

• Pandemic Era: Low rates thanks to Fed bond purchases.
• 2022-2023: Aggressive rate hikes (5.25 percentage points!) to tackle inflation.
• Late 2024: The Fed started cutting rates (three times), reducing the federal funds rate by 1 percentage point to 4.25%-4.5%.
• 2025: Holding Steady: Despite some internal disagreements, the Fed has been holding rates steady in 2025.

What's on the Horizon?

• Inflation: It's still a concern, hovering around 2.7%.
• Economic Growth: Things are slowing down, with GDP growth around 1.2%.
• The Fed's Next Move: All eyes are on the September 16-17 meeting for clues.

The Fed's projections suggest a couple of rate cuts later in 2025. This could bring mortgage rates down closer to 6% by the end of the year but don’t hold me to that!

What Does This Mean for You?

• If You're Buying Now: It's a tough market, but relief might be on the way. Talk to various lenders and find out the best rates for yourself.
• If You're Refinancing: Keep an eye on the Fed. If you are not in a rush, wait a while and then make a decision.
• Pay Attention: Keep an eye on the Fed meeting and any new developments from them.

Finding Your Best Rate: It's All About Shopping Around

I can't stress this enough: Don't settle for the first rate you see! Even small differences can add up to big savings over the life of your loan.

• Check with Multiple Lenders: Banks, credit unions, online lenders – get quotes from a variety of sources.
• Understand the Fine Print: Watch out for points, fees, and other costs that can impact the overall cost of your loan.
• Negotiate: Don't be afraid to haggle! Lenders want your business, so see if they can match or beat a competitor's offer.

Calculating Your Mortgage Payment: Know Before You Owe

Use a mortgage calculator to get a realistic sense of what your monthly payments will be. Plug in your estimated home price, down payment, and interest rate to see how it all adds up.

Here's a quick example:

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

Based on these numbers, your monthly payment would be around $2,649.04 (including principal, interest, property taxes, and homeowners insurance). You also need to factor in other expenses like home repairs, new furniture and landscaping etc.

What's My Take on All of This?

Look, mortgage rates are a moving target. It is not an easy ride and the conditions change every now and then. What's true today might not be true tomorrow. It's all about staying informed, doing your homework, and making smart decisions based on your individual circumstances. Don't get discouraged by the numbers! With a little research and a lot of patience, you can find a mortgage that fits your budget and makes your homeownership dreams a reality.

Are you dreaming of owning a home but worried about high mortgage rates? You are not alone. As of Wednesday, understanding where to find the best rates is crucial. Today, the states with the cheapest 30-year new purchase mortgage rates are New York, New Jersey, Kentucky, California, Colorado, North Carolina, Texas, Louisiana, Pennsylvania, and Washington, with rates averaging between 6.75% and 6.83%.. Let's dive into which states are offering a slightly better deal and why mortgage rates vary so much from state to state.

Mortgage Rates Today: The States Offering Lowest Rates

Why Do Mortgage Rates Vary by State?

It's a question I get asked a lot, and the answer is multifaceted. Here's a breakdown of the main reasons:

• Lender Presence and Competition: Not all lenders operate in every state. More competition among lenders usually translates to better rates for borrowers.
• State-Specific Regulations: States have different regulations impacting the mortgage industry, affecting lenders' costs and risk assessments.
• Credit Score Averages: States with higher average credit scores might see slightly better rates overall.
• Average Loan Size: The average loan size requested in a state can impact the rates offered.
• Risk Management by Lenders: Lenders have their own strategies for managing risk, and these can lead to rate variations.

In simpler terms, imagine different grocery stores in different neighborhoods. One might offer cheaper bread because it has more competition or lower operating costs. It's the same with mortgage lenders and states.

The States With the Lowest 30-Year Mortgage Rates

According to Investopedia's report and Zillow's data, these states offer the most attractive 30-year new purchase mortgage rates:

• New York: 6.75%
• New Jersey: 6.77%
• Kentucky: 6.78%
• California: 6.79%
• Colorado: 6.80%
• North Carolina: 6.81%
• Texas: 6.81%
• Louisiana: 6.82%
• Pennsylvania: 6.82%
• Washington: 6.83%

On the Other End: States With the Highest Rates

Conversely, some states have higher average rates. These include:

• Alaska: 7.06%
• Washington, D.C.: 7.04%
• Kansas: 7.03%
• Hawaii: 7.01%
• Iowa: 6.98%
• Nebraska: 6.96%
• New Mexico: 6.95%
• West Virginia: 6.94%
• North Dakota: 6.93%

These states registered averages between 6.93% and 7.06%.

Beyond the 30-Year Fixed: Other Mortgage Options

While the 30-year fixed-rate mortgage is the most popular, it's not the only game in town. Here's a quick look at national averages for other loan types:

Loan Type	Interest Rate
30-Year Fixed	6.86%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.88%
Jumbo 30-Year Fixed	6.78%
5/6 ARM	7.34%

Remember: FHA loans are insured by the government and are a good option for first-time homebuyers, while Jumbo loans are for larger loan amounts that exceed conforming loan limits. ARMs (Adjustable-Rate Mortgages) have interest rates that can change over time.

The National Picture: Where Mortgage Rates Stand Today

Across the country, the average 30-year new purchase mortgage rate is holding steady at 6.86%. This is down from a high of 7.15% earlier in the year (May 2025) but not as low as the 6.50% we saw in March 2025, or the two-year low of 5.89% last September.

Why the Fluctuations? The Federal Reserve's Role

Mortgage rates don't just magically appear. They're heavily influenced by the Federal Reserve (The Fed) and the bond market. Here's the deal:

• The Fed's Monetary Policy: The Fed sets the federal funds rate, which influences borrowing costs throughout the economy. When the Fed raises rates to combat inflation, mortgage rates tend to rise, and vice versa.
• Bond Market Activity: Mortgage rates are closely tied to the 10-year Treasury yield. When investors buy bonds (driving up their price and lowering their yield), mortgage rates tend to fall.

A Look Back at Recent Fed Actions (2024-2025)

The Fed had a busy couple of years. After aggressively raising rates in 2022 and 2023 to fight inflation, they paused for 14 months and then cut rates three times in late 2024. As of July 2025, they've been holding steady again, but the big question is, what's next?

What's on the Horizon? The Fed's Next Moves

The Fed's next meeting is in September (16-17th). This meeting will be critical because they will update their economic projections. As of right now, the market believes there's only a 47% chance of them cutting rates at that meeting. Ultimately, economists project it will likely bring rates to near 6% by year-end.

For Homebuyers: My Advice

The rollercoaster of rate changes can be stressful, especially for homebuyers. I'll share some personal advice on this volatile market:

1. Comparison Shop: Always, shop around and compare rates from multiple lenders. Don't settle for the first offer you see.
2. Understand Your Credit: Your credit score is a major factor in determining your mortgage rate. Work to improve your credit score if you need to.
3. Consider All Loan Options: Don't limit yourself to just the 30-year fixed rate. Explore FHA loans, ARMs, and other options to see what fits your situation best.
4. Be Patient and Informed: Stay up-to-date on economic news and Fed announcements. It's still helpful to always be prepared for upcoming changes that can affect interests rates.
5. Don't Try to Time the Market: Trying to perfectly time the market and get a historic low rate can be a losing game. Focus on finding a rate that you can comfortably afford.

Looking to buy a home? Finding the best mortgage rates can save you thousands of dollars over the life of your loan. The states with the cheapest 30-year new purchase mortgage rates are New York, California, New Jersey, Florida, Washington, North Carolina, Colorado, Georgia, and Texas, registering rate averages between 6.73% and 6.84%.

Mortgage Rates Today: The States Offering Lowest Rates

Why Mortgage Rates Vary So Much

One of the first things people ask me is, “Why are mortgage rates different from state to state?” It's a fair question! Several factors are at play.

• Lender Presence: Some lenders simply don't operate in every state. The fewer lenders competing for your business, the higher the rates can be.
• Credit Scores: The average credit score in a state can influence overall rates. States with higher average scores might see slightly better rates.
• Loan Sizes: The average loan size can also have an impact. In areas with pricier properties, rates might be adjusted to reflect the lenders' risk.
• State Regulations: Believe it or not, state regulations can play a role. Some states have stricter rules for lending, which can affect rates.
• Risk Management by Lenders: At the end of the day, lenders have different ways of assessing risk. Some might be more willing to offer lower rates in certain areas than others.

The Cheapest States for Mortgage Rates (July 30, 2025)

Okay, let's get to the good stuff! As mentioned earlier, according to Investopedia's report and Zillow's data, here's a quick view of the states with the lowest rates as of Tuesday:

• New York
• California
• New Jersey
• Florida
• Washington
• North Carolina
• Colorado
• Georgia
• Texas

These states saw average rates between 6.73% and 6.84%– but why? Well, these are states with generally robust economies and large housing markets. This means more competition among lenders, which can drive rates down.

The Most Expensive States for Mortgage Rates

On the flip side, some states had higher mortgage rates. As of July 30, 2025, these were the states with the priciest 30-year new purchase rates:

• Alaska
• West Virginia
• Kansas
• New Mexico
• Washington, D.C.
• Wyoming
• Hawaii
• Iowa
• Oklahoma
• Rhode Island

In these states, average rates ranged from 6.94% to 7.10%. Again, various factors contribute, including smaller populations, less competition among lenders, and potentially different risk assessments.

National Mortgage Rate Trends: A Quick Overview

It's always a good idea to keep an eye on national mortgage rate trends. Here's a snapshot:

• 30-Year Fixed: 6.86%
• FHA 30-Year Fixed: 7.55%
• 15-Year Fixed: 5.88%
• Jumbo 30-Year Fixed: 6.81%
• 5/6 ARM: 7.33%

These figures give you a sense of where things stand nationally. I always recommend looking at these numbers in context, though. What's been happening over the past few months? What are experts predicting for the future? I think staying informed can help you make smarter decisions.

By the way, the national 30-year rates actually fell 5 basis points Tuesday, reversing the 3-day rising momentum. The current average of 6.86% is below the one-year high of 7.15% in May. In March, the 30-year rates had dropped to 6.50%, which was the lowest average of 2025. Last September, the 30-year rates had plunged to the 2-year low of 5.89%.

Important Reminder About ‘Teaser' Rates

You see those really low mortgage rates advertised online? Be careful! Those are often ‘teaser' rates, and they might not be what they seem.

• These rates often require you to pay points upfront.
• They might be based on a hypothetical borrower with a perfect credit score and a massive down payment.
• The actual rate you qualify for will depend on your unique credit score, income, and financial situation.

How the Federal Reserve Impacts Mortgage Rates

The Federal Reserve (also called the Fed) plays a huge role in setting mortgage rates. Here's the deal:

• Rate Cuts in Late 2024: The Fed cut rates three times between September and December 2024.
• 2025 Outlook: Plans are in place for two rate cuts this year, but the timing is still up in the air.
• Key Influences: Factors like inflation, economic growth, and even political pressure can influence the Fed's decisions.

Basically, when the Fed cuts rates, mortgage rates tend to follow suit. It's not a direct connection, but it's definitely something to watch. Currently the analysts are projecting the 30-year mortgage rate to decline to 5% by 2028 if the Fed follows through on the rate cuts.

Calculate Your Monthly Mortgage Payment

Want to get a sense of what your monthly payment might look like? Here is a quick breakdown of the calculation using an example.

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

With those numbers, your monthly payment would be around \$2,649.04. But remember, that's just an estimate. It doesn’t take into account things like property taxes and homeowners insurance, which can add hundreds of dollars to your monthly bill.

Here's a breakdown with the additional costs of property taxes, homeowners insurance.

Item	Amount
Principal & Interest	$2,264.38
Property Taxes	$256.67
Homeowners Insurance	$128.00
Total Monthly Payment	$2,649.04
Mortgage Size	$352,000.00
Mortgage Interest	$463,176.16
Total Mortgage Paid	$815,176.16

What Affects Mortgage Rates: A Deep Dive

Mortgage rates don't just appear out of thin air! It is important to understand which factors are involved so as a future home-owners, we can be alert and make rational decisions. Think of them as a complex equation with lots of moving parts. Here are some of the most important factors:

• The Bond Market: Mortgage rates are closely tied to the bond market, especially 10-year Treasury yields.
• The Federal Reserve: As we discussed, the Fed's monetary policy has a big impact.
• Competition Among Lenders: More competition can lead to lower rates.
• The Economy: A strong economy typically means higher rates, while a weaker economy can lead to lower rates.
• Inflation: High inflation usually pushes rates up.
• Your Credit Score: A good credit score can get you a lower rate.
• Your Down Payment: A larger down payment can also help you secure a better rate.

Personal Thoughts

From my hands-on experience as a real estate advisor, I want tell real-estate newbies that getting good mortgage rates is like playing a long game. Don't rush into the first offer you see. Take your time, do your research, and compare rates from multiple lenders. And don't be afraid to negotiate! Lenders want your business, so they might be willing to work with you on the rate. I've seen so many people save big money simply by being proactive and informed.

And finally, remember that mortgage rates are just one piece of the puzzle. I have also seen clients buying luxurious houses that are always empty. Owning property also requires maintenance and other costs. Make sure you can comfortably afford your monthly payments, even if rates happen to go up in the future.

Looking for the best mortgage rates this July? If you're trying to buy a home or refinance, understanding where the lowest mortgage rates are is essential. As of Monday, the states with the cheapest 30-year new purchase mortgage rates were New York, New Jersey, California, North Carolina, Florida, Tennessee, Virginia, and Washington. These states saw average rates hovering between 6.75% and 6.87%.

Mortgage Rates Today: The States Offering Lowest Rates

Why do mortgage rates vary so much anyway? It's something I've often wondered myself. Let's dive in.

Mortgage rates aren't uniform across the country. A variety of factors conspire to create differences from state to state. Here's a more in-depth look:

• Lender Presence: Not all lenders operate everywhere. Regional and local lenders will have different business strategies and cost structures that influence rates.
• Credit Score Averages: States with higher average credit scores might see slightly better rates overall.
• Average Loan Size: Loan amounts can influence rates. Larger loans might carry slightly different terms.
• State Regulations: Mortgage regulations vary from state to state, affecting the cost of doing business for lenders.
• Risk Management: Each lender has its own approach to assessing risk and setting rates accordingly.

States With the Lowest Mortgage Rates (July 29, 2025)

As mentioned earlier, according to Investopedia's report and Zillow's data, here's a quick view of the states with the lowest rates as of Monday:

• New York
• New Jersey
• California
• North Carolina
• Florida
• Tennessee
• Virginia
• Washington

States With the Highest Mortgage Rates (July 29, 2025)

Conversely, these states had the highest rates:

• Alaska
• West Virginia
• Kansas
• Mississippi
• North Dakota
• Washington, D.C.

In these areas, average rates ranged from 6.98% to 7.10%. That may not seem like much, but it can add up over the life of a 30-year mortgage!

A Snapshot of National Mortgage Rate Trends

It's not just about what's happening at the state level. The national mortgage rates are also constantly in flux.

Here's a quick look at the national averages as of July 29, 2025:

Loan Type	New Purchase Rate
30-Year Fixed	6.91%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.93%
Jumbo 30-Year Fixed	6.85%
5/6 ARM	7.35%

Important Caveat About Advertised Rates

I want to emphasize something crucial here and that you keep in mind when searching for mortgages deals. The rates you see advertised online are often teaser rates, the absolute best-case scenario. They might require you to “buy down” the rate with points, have an excellent credit score, or take out a very specific loan amount. These things are almost impossible to achieve so please keep in mind.

The Need to Shop Around

This cannot be overstated: always shop around! Don't settle for the first rate you see. Get quotes from multiple lenders – local credit unions, large national banks, and online mortgage companies. Comparing rates is the single best way to make sure you are getting the best deal for your circumstances. The difference of even 0.1-0.2% can save you thousands of dollars over the life of the mortgage.

What Factors Play a Role in Mortgage Rate Fluctuations?

Many of us just worry about how the rates affect our wallets, but understanding the factors that cause movements can help us plan better. Here's a breakdown:

• Bond Market: The 10-year Treasury yield is an indication and a key index. When Treasury yields rise, mortgage rates tend to follow suit.
• Federal Reserve Policy: The Fed can indirectly influence mortgage rates through its bond-buying programs and the federal funds rate.
• Competition Among Lenders: A more competitive market can lead to lower rates as lenders vie for your business.

The Fed's Actions and What They Mean for You

The Federal Reserve's monetary policy plays a significant role in shaping mortgage rates. Here’s a summary of the latest:

• Recent Rate Cuts: The Fed made three rate cuts in late 2024, bringing the federal funds rate down by 1%, to between 4.25% and 4.5%.
• 2025 Outlook: The Fed plans for two more rate cuts in 2025. However, viewpoints vary when the cuts have to be implemented.
• Key Influencers on Fed Policy
  • Tariffs and Inflation: Trump’s tariffs could lead to substantial inflation.
  • Economic Slowdown: GDP growth is expected to slow down to 1.4%.
  • Political Pressure: The Fed is resisting pressure to aggressively cut rates.

What Will Happen With Mortgage Rates in The Future?

Analysts suggest that if the Fed continues with the rate cuts, the 30-year mortgage rate could go down to 5% by 2028.

Currently, bond markets believe there is only a 5% chance that there will be a rate cut by July 2025, with higher odds for rate cuts in September or October.

The Fed's upcoming meeting on July 30, 2025, is likely to result in a pause.

Longer-term, the Fed anticipates a gradual easing cycle, with rates settling around 2.25%–2.5% by 2027.

How to Find the Best Mortgage Rate For You: A Step-by-Step Guide

Here's my advice on how to find the best mortgage rate:

1. Check Your Credit Score: A higher credit score translates to lower rates.
2. Decide on a Loan Type: 30-year fixed, 15-year fixed, adjustable-rate – each has pros and cons!
3. Shop Around: Get quotes from multiple lenders, from your local credit union to online giants.
4. Get Pre-Approved: This gives you a firm idea of what you can borrow.
5. Consider a Mortgage Broker: Brokers can shop around on your behalf.
6. Negotiate: You're not obligated to accept the first offer.

Final Points to Remember

Navigating the world of mortgage rates can feel complex, but armed with the right information, you can make smart choices. Always compare rates, understand the factors, and don't be afraid to negotiate. You will receive the best mortgage rate possible if you keep these things in mind. Good luck with your homebuying or refinancing journey!

Are you dreaming of owning a home but worried about mortgage rates? You're not alone! It's a big decision and knowing where to find the best deals can make all the difference. As of July 25, 2025, the states boasting the cheapest 30-year new purchase mortgage rates are New York, California, Pennsylvania, Massachusetts, New Jersey, Washington, and North Carolina, with rate averages ranging from 6.72% to 6.86%. Let's dive into what's driving these rates and what it means for you.

Mortgage Rates Today: The States Offering Lowest Rates

Why Do Mortgage Rates Vary by State?

It's a question I get asked a lot. Why isn't there just one national rate? Several factors contribute to these differences which I feel everyone should be aware of. Here's the inside scoop:

• Lender Presence: Not all lenders operate in every state. Those that do might prioritize specific regions due to existing infrastructure or market strategies.
• Credit Score Averages: States with higher average credit scores may see slightly lower rates overall, as lenders perceive less risk.
• Average Loan Size: The size of the average mortgage in a state can also affect rates. For example, states with higher property values tend to have larger loan sizes.
• State Regulations: Mortgage lending is regulated at both the federal and state levels. Some states may have more stringent requirements or consumer protection laws, which can influence lender behavior and, ultimately, rates.
• Risk Management: Lenders have their own unique ways of assessing and managing risk. Some might be more aggressive in certain markets, while others might be more conservative.

Today's Snapshot: Who's Got the Best and Worst Rates?

Alright, let's get specific. As I mentioned, the national average for a 30-year fixed-rate mortgage is currently around 6.89%. According to Investopedia's report and Zillow's data, here's a quick view of the states with the lowest and highest rates as of Thursday:

States with Lowest 30-Year Mortgage Rates

State	Rate
New York	6.72%
California	6.78%
Pennsylvania	6.80%
Massachusetts	6.82%
New Jersey	6.84%
Washington	6.85%
North Carolina	6.86%

States with Highest 30-Year Mortgage Rates

State	Rate
Alaska	6.94%
West Virginia	6.95%
Mississippi	6.96%
Washington, D.C.	6.97%
Kentucky	6.98%
Iowa	6.99%
Kansas	7.00%
South Carolina	7.00%
Wyoming	7.01%

It's worth noting that even within a state, rates can vary significantly depending on the lender and your individual financial situation. Always, always shop around!

Don't Be Fooled: Understanding Average vs. “Teaser” Rates

You've probably seen ads with incredibly low mortgage rates—the kind that make you do a double-take. These are often “teaser” rates, and they come with a catch. Here's what to watch out for:

• Points: To get the advertised rate, you might have to pay “points” upfront. One point equals 1% of the loan amount, so it can add up quickly.
• Credit Score Requirements: The lowest rates are usually reserved for borrowers with exceptional credit scores. If your credit isn't perfect, you'll likely pay a higher rate.
• Loan Size Limitations: Some lenders offer lower rates only on smaller or larger loan amounts.
• Hypothetical Borrowers: The rates may be based on a borrower with a smaller-than-typical loan.

The rates I'm sharing here are averages, which gives you a more realistic picture of what you can expect. Your actual rate will depend on your unique circumstances.

Navigating the National Rate Trends

This year has been a rollercoaster. Looking at the big picture, national mortgage rates are still lower than the mid-May high of 7.15%. I remember back in March, 30-year rates even dipped to 6.50%, the lowest average of the year. And who can forget last September when rates plunged to a two-year low of 5.89%? Those were the days!

Understanding the Fed's Role: Rate Cuts and Economic Influences

The Federal Reserve plays a HUGE role in setting the stage for mortgage rates. Here's the latest:

• Recent Fed Actions: The Fed cut rates three times in late 2024 (September to December), bringing the federal funds rate down to a target range of 4.25%–4.5%.
• 2025 Outlook: Further cuts are expected in the coming years. The median projection is that the federal funds rate will fall to 3.9% by the end of 2025. The Fed intends two rate cuts this year, but when and how large are still up for discussion.
• Key Influences on Fed Policy: Factors like tariffs, inflation, and economic slowdown are all on the Fed's radar.
• Tariffs and Inflation: Fed Chair Jerome Powell anticipates inflation from tariffs, which complicates the timing of rate cuts.
• GDP growth is projected at 1.4% for 2025, so an economic slowdown might push the Fed to cut rates this year.

If the Fed follows through on planned cuts, analysts predict that the 30-year mortgage rate could decline as low as 5% by 2028.

The takeaway? Keep an eye on the Fed! Their decisions have a ripple effect on mortgage rates and your home-buying power.

Other Factors to Consider to Secure the Best Deal In Today's Market

• Your Credit Score: This is a big one. The higher your credit score, the lower the interest rate you'll likely qualify for.
• Your Down Payment: A larger down payment not only reduces the amount you need to borrow but can also signal to lenders that you're a lower-risk borrower.
• Your Debt-to-Income Ratio (DTI): Lenders will look at how much of your monthly income goes toward debt payments. A lower DTI is generally more favorable.
• The Type of Loan: Different types of loans (e.g., conventional, FHA, VA) come with different rates and requirements.

I can't stress this enough: shop around! Get quotes from multiple lenders. Don't be afraid to negotiate. Even a small difference in interest rate can save you thousands of dollars over the life of the loan.

Understanding the Mortgage Landscape Beyond 30-Year Fixed Rates

While the 30-year fixed-rate mortgage is the most popular, it's not the only option. Here's a quick rundown of other loan types:

• FHA 30-Year Fixed: Often favored by first-time homebuyers, these loans are insured by the Federal Housing Administration and typically have lower down payment requirements. Rates averaged 7.55%
• 15-Year Fixed: With a shorter term, you'll pay off the loan faster and save on interest. Expect rates of 5.92%
• Jumbo 30-Year Fixed: For loan amounts that exceed conforming loan limits. Rates are at 6.80%
• 5/6 ARM (Adjustable-Rate Mortgage): These loans have a fixed rate for the first five years, then adjust every six months based on market conditions. Rates hover around 7.35%.

Calculate Your Mortgage Payments

Now, all this talk about rates is meaningless if you don't know how it affects your monthly payments. To get a sense of what you can afford, play around with a mortgage calculator.

Input your desired home price, down payment, loan term, and estimated interest rate to see how much your monthly payments would be. Most calculators also factor in property taxes and homeowners insurance, giving you a more complete picture of your total housing costs.

And as you explore different loan scenarios, remember that you can always get a lower upfront rate with a variable rate. This is worth consideration, however, I advise borrowers to educate themselves on the implications of a variable rate mortgage.

Final Thoughts

Buying a home is one of the biggest financial decisions you'll ever make. By understanding Mortgage Rates Today – including the different rates that exist in New York, California, Pennsylvania, Massachusetts, New Jersey, Washington, and North Carolina – you can make smarter and more informed decisions. Keep shopping!

The states offering the lowest 30-year new purchase mortgage rates are New York, Washington, New Jersey, North Carolina, California, Michigan, Virginia, Arizona, and Oregon, with averages ranging from 6.66% to 6.83%. Keep reading to learn more about what's impacting these rates, and how to find the best deal for you.

Today’s Mortgage Rates: The States Offering Lowest Rates

Why Mortgage Rates Matter (More Than You Think)

Let's be real, mortgage rates aren't the most exciting topic. But, they dramatically impact how much you'll pay for your home over the years. A small change in the rate can lead to thousands of dollars in savings or extra costs. Understanding these rates is crucial whether you're a first-time homebuyer or looking to refinance.

State-by-State Breakdown of Mortgage Rates

Mortgage rates aren't the same across the country. Several factors contribute to these differences, including the lenders that operate in a particular state, state-level regulations, and average loan sizes and credit scores in these states.

According to Investopedia's report and Zillow's data, here's a quick view of the states with the highest and lowest rates as of Wednesday:

• States with the Lowest 30-Year New Purchase Mortgage Rates:
  • New York: 6.66%
  • Washington: 6.70%
  • New Jersey: 6.73%
  • North Carolina: 6.76%
  • California: 6.79%
  • Michigan: 6.80%
  • Virginia: 6.81%
  • Arizona: 6.82%
  • Oregon: 6.83%
• States with the Highest 30-Year New Purchase Mortgage Rates:
  • West Virginia: 6.91%
  • Alaska: 6.93%
  • Washington, D.C.: 6.95%
  • Kansas: 6.96%
  • New Mexico: 6.98%
  • Maryland/Missouri:6.98%

As you can see, there's a difference of over 0.3% between the lowest and highest rates. In the grand scheme of things, that is quite significant.

National Mortgage Rate Trends

While state-level rates are interesting, it's also good to keep an eye on national trends:

• 30-Year Fixed: 6.86% (up 2 basis points from yesterday)*
• FHA 30-Year Fixed: 7.55%
• 15-Year Fixed: 5.87%
• Jumbo 30-Year Fixed: 6.77%
• 5/6 ARM: 7.37%

It's important to remember that these are average rates. Your actual rate will vary based on your individual circumstances.

Why Do Mortgage Rates Vary from State to State?

I've always found the variation in mortgage rates across states to be fascinating. It comes down to a few key factors:

• Lender Presence: Not all lenders operate in every state. That means less competition in some states, which can lead to higher rates.
• State Regulations: Mortgage regulations vary by state. Some states have stricter rules that can make it more expensive for lenders to operate.
• Credit Scores and Loan Sizes: States with generally higher average credit scores might see slightly lower rates, as lenders perceive less risk. Similarly, areas with larger average loan sizes may reflect in the rates.
• Risk Tolerance: Some lenders are simply more willing to take on risk than others, which affects the rates they offer.

The Importance of Shopping Around

Here’s my golden rule for getting a mortgage: always shop around. Don't just go with the first lender you find. Rates can vary widely, so comparing offers is essential.

I know it can be time-consuming, but it's worth the effort. Even a small difference in the interest rate can save you a lot of money over the life of the loan. You might be surprised at how much rates differ from one lender to the next.

I know from my own experience, that shopping for the best rate when buying my first home resulted in over $10,000 in savings over the life of the loan. Don't let that money slip through your fingers.

Factors Influencing Mortgage Rates

Understanding these factors can help you anticipate whether rates are likely to rise or fall:

• The Bond Market: Mortgage rates often track the yield on 10-year Treasury bonds. If bond yields rise, mortgage rates tend to follow suit.
• The Federal Reserve: The Fed's monetary policy plays a significant role. Its policies on bond buying and funding government-backed mortgages can influence rates.
• Competition Among Lenders: The more lenders compete for your business, the better the rates you're likely to get.

The Federal Reserve’s Current Role

The Federal Reserve plays a huge role in setting the tone for mortgage rates. Here’s what’s been happening:

• Recent Rate Cuts: The Fed cut rates three times from September to December 2024, bringing the federal funds rate down to a target range of 4.25%–4.5%.
• Future Outlook: The Fed is expected to make two further rate cuts in 2025. When? That's the million-dollar question.
• Key Influences: Factors like tariffs, inflation, economic slowdown, and even political pressure influence the Fed's decisions.

As mentioned above, because the Fed is projecting cuts to the rates later this year, analysts are projecting the 30-year mortgage rate to progressively reduce. There are hopes of a 5% rate being available by the year 2028.

How to Calculate Your Potential Mortgage Payment

Before you start looking at homes, get an idea of what you can afford. Online mortgage calculators can help you estimate your monthly payments based on factors like:

• Home price
• Down payment
• Loan term
• Property taxes
• Homeowners insurance
• Interest rate

Keep in mind, these are just estimates. Your actual payment could be different.

Factor	Example
Home Price	$440,000
Down Payment	$88,000 (20%)
Loan Term	30 years
Interest Rate (APR)	6.67%
Estimated Monthly Payment	$2,649.04

My Advice: Prepare and Be Patient

Getting a mortgage can be a complex process, but with some preparation, you can go in ready. Here are a few tips I've learned along the way:

• Check Your Credit Score: A good credit score will help you get a better rate.
• Save for a Down Payment: The more you put down, the less you'll have to borrow.
• Get Pre-Approved: This will give you a better idea of how much you can afford and make you a more attractive buyer.
• Shop Around: I can't stress this enough. Get quotes from multiple lenders. There are no obligations to committing just from hearing offers.

Final Thoughts

Today's mortgage rates are constantly changing. While some states offer slightly lower rates than others, the most important thing is to shop around, compare offers, and find the best deal for your specific financial situation. Keep an eye on national trends, and don’t be afraid to ask questions. After-all, this is likely the biggest purchase you have or will make in your life.