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.

Looking to buy a home and snag the best mortgage rate possible? You're probably wondering: where can I find the lowest mortgage rates today? As of Tuesday, the states boasting the cheapest 30-year new purchase mortgage rates are New York, Colorado, Washington, California, North Carolina, Tennessee, Florida, New Jersey, and Massachusetts, where average rates hover between 6.65% and 6.82%. It's time to dive into why these rates fluctuate and how you can take advantage of these lower numbers.

Today's Mortgage Rates: The States Offering Lowest Rates

Decoding Mortgage Rate Variations Across States

It's fascinating how mortgage rates can differ from state to state. It's not just some random lottery, but rather a cocktail of economic factors and local market conditions. Here’s a breakdown of what's behind these differences:

• Lender Presence: Not every lender is available in every state. The level of competition among mortgage lenders in each state can significantly impact rates. More competition usually translates to better deals for borrowers as lenders jockey for your business.
• State-Level Regulations: Each state has its own set of rules and regulations governing the mortgage industry. These regulations can affect the cost of doing business for lenders, which they may then pass on to borrowers in the form of higher interest rates.
• Credit Score Averages: States with higher average credit scores might see lower rates overall. Lenders see borrowers with better credit as less risky, so they offer them better terms.
• Average Loan Size: This might seem counterintuitive, but states with smaller loan sizes can sometimes see higher rates. Lenders might need to charge more to make the loan profitable if the loan amount is lower.
• Risk Management Strategies: Every lender has its own approach to managing risk. This can include things like being more conservative in certain markets or focusing on specific types of borrowers.

Seeing these numbers and understanding the reasons behind them always makes me think of the importance of doing your research. The mortgage process can feel overwhelming, but knowledge is truly power!

Current National Mortgage Rate Trends

Let’s zoom out from the state level and look at the national picture. Mortgage rates seem to be stabilizing after a period of some volatility.

• The average rate for a 30-year new purchase mortgage is 6.84%, which is down 7 basis points from the previous two days.
• Last week, the rate was 6.91%, which was a high since mid-June.
• We’ve come a long way from May 2025, when rates spiked to 7.15%, a one-year high.
• Thinking back to March 2025, rates were at their lowest average for the year, around 6.50%.
• And who can forget September 2024, when rates hit a two-year low of 5.89%?

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

Loan Type	New Purchase Rate
30-Year Fixed	6.84%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.87%
Jumbo 30-Year Fixed	6.78%
5/6 ARM	7.37%

Highest Mortgage Rate States

According to Investopedia's report and Zillow's data, on the other end of the spectrum, here are the states with the highest 30-year new purchase mortgage rates as of July 23, 2025: West Virginia, Alaska, Washington D.C., South Dakota, New Mexico, North Dakota, Oklahoma, Rhode Island, and Wyoming. In these states, the average rates range from 6.90% to 6.97%.

There could be many factors contributing to these slightly higher rates, and it's worth investigating further if you plan to buy property in any of these locations.

What Drives Mortgage Rates? Understanding the Big Picture

To really understand mortgage rates, you need to know what makes them tick. These rates are like dancers following the music of the broader economy. Here are some leading musicians:

• The Bond Market: Mortgage rates often mirror the movements of the bond market, especially the 10-year Treasury yield. When bond yields rise, mortgage rates usually follow suit.
• The Federal Reserve (The Fed): The Fed's actions have a huge impact. This includes everything from buying bonds to setting the federal funds rate.
• Competition Among Lenders: As mentioned before, competition is a key driver. Lenders will often lower rates to attract more borrowers, particularly when demand for mortgages is high.

Thinking back to the economic climate of the past few years, we saw some significant shifts:

• 2021: The Fed was buying bonds like crazy to combat the economic fallout from the pandemic. This kept mortgage rates artificially low.
• Late 2021 – 2023: The Fed started pulling back on bond purchases and aggressively raised the federal funds rate to fight high inflation. This caused mortgage rates to rise sharply.

The Federal Reserve's Influence: Present Day

The Fed's policies continue to be important. While the pandemic emergency is over, the Fed is still playing a significant role in the economy.

• Recent Fed Actions: The Fed cut rates three times in late 2024, bringing the federal funds rate down to a target range of 4.25%–4.5%.
• Future Rate Cuts: The Fed is projected to cut rates a couple more times in 2025, potentially bringing the federal funds rate down to 3.9% by the end of the year. Of course, there are split opinions as some want cuts sooner and some want to wait longer.
• Inflation and Tariffs: The dreaded “I” word – Inflation of even the mention of tariffs can have an impact on Fed policy decisions. While the Fed is trying to balance inflation control with economic growth, any big shifts in these areas can affect how they respond.

Mortgage Rates Implication:

• The 30-year mortgage rate averaged 6.7% in 2024 and is hovering around 6.8% as of late June of 2025. Experts project that rates could potentially fall to 5% by 2028*. Again, this of course depends on rates if the Fed actually follows through on the rumored rate cuts.

Shopping Around for the Best Mortgage Rate

Regardless of the national or state trends, there’s one golden rule: shop around. Mortgage rates can vary significantly from lender to lender, so it pays to do your homework.

• Compare Rates: Don't just settle for the first rate you see. Get quotes from multiple lenders to see who can offer you the best deal.
• Factor in Fees: Pay attention to fees as well as the interest rate. Sometimes a slightly higher rate with lower fees can be a better deal in the long run.
• Understand Points: Some lenders offer lower rates in exchange for paying points upfront. This can be a good option if you plan to stay in the home for a long time, but it might not be worth it if you plan to move soon.
• Talk to a Mortgage Broker: A mortgage broker can help you compare rates from multiple lenders and guide you through the mortgage process.

Remember, the rates you see advertised online are often “teaser rates” designed to attract your attention. The actual rate you qualify for will depend on your individual circumstances, including your credit score, income, and debt-to-income ratio.

Looking for the absolute lowest mortgage rates? As of Monday, the states offering the cheapest 30-year new purchase mortgage rates are New York, California, Florida, Washington, North Carolina, and Pennsylvania. In these states, expect to see average rates ranging between 6.64% and 6.83%. Let’s dive deeper into what's driving these rates and how you can snag the best deal possible.

Today’s Mortgage Rates: The States Offering Lowest Rates

Why Do Mortgage Rates Vary By State?

You might be wondering, “Why isn't there just one national mortgage rate?” Great question! Several factors contribute to the state-by-state differences in mortgage rates:

• Regional Lender Presence: Not all lenders operate in every state. The level of competition among lenders directly impacts rates. More competition usually means lower rates.
• State-Level regulations: Rules about interest rates and foreclosure processes can add a layer of regulatory-related fees.
• Credit Score Averages: States with higher average credit scores may see slightly lower rates overall, as lenders perceive less risk. Credit scores are majorly responsible for interest rates applicable to home loans.
• Average Loan Size: The average home price and subsequent loan amount can play a role. Larger loan portfolios might allow lenders to offer slightly different rates.
• Risk Management Strategies: Every lender has its own way of assessing risk. Some might be more aggressive in certain states, leading to variations in rates.

Digging into the Numbers:

According to Investopedia's report and Zillow's data, here's a breakdown of the states offering the lowest 30-year fixed mortgage rates for new purchases:

• Lowest Rate States (6.64% – 6.83%):
  • New York
  • California
  • Florida
  • Washington
  • North Carolina
  • Pennsylvania
  • Georgia
  • Texas
• Highest Rate States (6.91% – 6.95%):
  • West Virginia
  • Alaska
  • New Mexico
  • Kansas
  • North Dakota
  • Oklahoma
  • Rhode Island
  • South Dakota
  • Washington, D.C.
  • Wyoming

National Averages:

To put things in perspective, here's a glance at the national averages for different loan types:

Loan Type	New Purchase Rate
30-Year Fixed	6.84%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.86%
Jumbo 30-Year Fixed	6.79%
5/6 ARM	7.38%

The Importance of Shopping Around

This can't be overstated: Always shop around for mortgage rates! Just because one lender offers you a certain rate doesn't mean it's the best rate you can get. Comparing rates from multiple lenders is crucial, regardless of the type of home loan you're seeking.

Don't Fall for the Teaser Rate Trick

Be very cautious of advertised mortgage rates you see online. These are often teaser rates designed to grab your attention. The fine print usually reveals that these rates require:

• Paying points upfront (essentially, pre-paying interest)
• An ultra-high credit score
• A smaller-than-typical loan amount

The actual rate you qualify for will depend on your individual financial situation.

Factors Affecting Your Personal Mortgage Rate

When lenders determine your personal mortgage rate, they consider several factors, including:

• Credit Score: A higher credit score typically results in a lower interest rate.
• Income and Debt-to-Income Ratio (DTI): Lenders want to ensure you can comfortably repay the loan. A lower DTI is generally favorable.
• Down Payment: A larger down payment reduces the lender's risk.
• Loan Type: Different loan types (e.g., fixed-rate, adjustable-rate, FHA, VA) come with varying rates and requirements.
• Property Type: Is it a single-family home, condo, or investment property? This can affect your rate.

Let's Talk Payment: Understanding Your Monthly Costs

Don't just focus on the interest rate! Understand all the costs that make up your monthly mortgage payment. These typically include:

• Principal and Interest: The actual loan repayment
• Property Taxes: A significant expense that varies by location
• Homeowners Insurance: Protects your property from damage or loss
• Private Mortgage Insurance (PMI): Required if your down payment is less than 20%

What Makes Mortgage Rates Move? Understanding the Big Picture

Mortgage rates don't exist in a vacuum. They're influenced by a complex interplay of economic forces:

• The Bond Market: Mortgage rates closely track the movement of 10-year Treasury yields. When yields rise, mortgage rates often follow suit.
• The Federal Reserve (The Fed): The Fed's monetary policy has a significant impact. Decisions about interest rates and bond buying can directly influence mortgage rates.
• Inflation: High inflation can lead to higher interest rates as the Fed tries to cool down the economy.
• Economic Growth: A strong economy can push interest rates higher as demand for credit increases.

Decoding the Fed's Recent Actions

The Federal Reserve's role in shaping mortgage rates is undeniable.

• Recent Fed Actions and Rate Trajectory:
  • Rate Cuts in Late 2024: The Fed cut rates three times in late 2024 (September to December), reducing the federal funds rate by 1 percentage point to a target range of 4.25%–4.5%, where it has remained through June 2025
  • 2025 Outlook: The Fed’s June 2025 meeting reaffirmed plans for two rate cuts in 2025, with possibilities of officials advocating for cuts by July 2025 or later in September
  • “Dot plot” shows a median projection of the federal funds rate falling to 3.9% by year-end 2025 with more future cuts to happen at 2026-2027
• Key Influences on Fed Policy:
  • Tariffs and Inflation: Fed Chair Jerome Powell expects “meaningful” inflation from tariffs, The Fed views this as a temporary shock, not requiring rate hikes, but it complicates the timing of cuts.
  • The Fed anticipates a gradual easing cycle, with rates settling near 2.25%–2.5% by 2027.

Putting It All Together: What to Do Next

If you're in the market for a mortgage, here's my advice:

1. Check Your Credit: Make sure your credit report is accurate and address any errors.
2. Save for a Down Payment: A larger down payment gives you more options and potentially a lower rate.
3. Shop Around: Compare rates from multiple lenders, including banks, credit unions, and online mortgage companies.
4. Get Pre-Approved: A pre-approval gives you a firm idea of how much you can borrow and strengthens your offer on a home.

Final Thoughts

Navigating the mortgage market can feel overwhelming, but understanding the factors that influence rates – both nationally and at the state level – can empower you to make informed decisions. Remember, the lowest rate isn't always the best deal. Focus on finding a loan that fits your budget and long-term financial goals.

Looking for the best mortgage rates today? As of Thursday, you'll generally find the lowest 30-year fixed mortgage rates in New York, New Jersey, California, Washington, Florida, Texas, Georgia, North Carolina, and Oklahoma, where average rates hover between 6.78% and 6.89%. Let's dive into what’s influencing these rates and how you can snag the best deal.

Today's Mortgage Rates: The States Offering Lowest Rates

Why Do Mortgage Rates Vary by State?

It's easy to assume that mortgage rates are the same everywhere, but that's simply not the case. Several factors contribute to the differences we see from state to state. It’s like shopping for gas – the price varies based on location, right? Mortgages are similar, though the reasons for variation are a bit more complex. Here’s a simple breakdown:

• Lender Presence and Competition: Not all lenders operate in every state. The level of competition among lenders in a particular region can significantly impact rates. More competition often means lower rates as lenders fight for your business.
• State-Specific Regulations: Real estate laws and regulations vary widely across states. These laws can influence the cost of doing business for lenders, which in turn affects the rates they offer.
• Credit Score Averages: Average credit scores can differ by state. Lenders often consider the overall creditworthiness of borrowers in a region when setting rates. Higher average credit scores may reflect lower risk and therefore lower rates.
• Average Loan Size: The average loan size can also vary by state, reflecting differences in housing costs. This can impact a lender's risk assessment and influence the rates offered.
• Risk Management Strategies: Lenders have different approaches to managing risk. Some lenders may be more conservative, offering slightly higher rates to offset perceived risks, while others may be more aggressive.

The States with the Lowest Mortgage Rates Right Now

According to Investopedia's report and Zillow's data, here's a breakdown of the states offering the lowest 30-year fixed mortgage rates for new purchases:

• New York: Average rates around 6.78%.
• New Jersey: Rates averaging 6.80%.
• California: Mortgage rates averaging 6.82%.
• Washington: You might see 6.84% rate on average.
• Florida: Rates hovering around 6.85%.
• Texas: Averages of about 6.86%.
• Georgia: Approximatley 6.87% rate.
• North Carolina: Similar to Georgia .
• Oklahoma: Rates around 6.89%.

The States with the Highest Mortgage Rates Today

On the flip side, some states are seeing higher mortgage rates than others. As of today, July 18, 2025, these states are experiencing the highest rates:

• Alaska: You might see rates around 6.97%.
• West Virginia: Lookout for, rates averaging 6.99%.
• North Dakota: Approximatley 7.01% rate.
• Washington, D.C.: Rates you might see close to 7.03%.
• Wyoming: Rates averaging roughly around 7.04%.
• Maine: Rates hovering around 7.05%.
• New Mexico: Averages of about 7.06%.
• South Dakota: You might see rate of 7.07%.

National Mortgage Rate Trends

Even though state-specific factors play a role, it's essential to understand the overall national trends affecting mortgage rates. Think of it like the tide – it affects all boats, but some boats are closer to shore than others.

• National Averages: The national average for a 30-year fixed mortgage is currently at 6.91%. That's up slightly from yesterday but still better than mid-May when rates hit a one-year high of 7.15%.
• Other Loan Types: Here's a quick look at national averages for other common loan types:
  • FHA 30-Year Fixed: 7.55%
  • 15-Year Fixed: 5.93%
  • Jumbo 30-Year Fixed: 6.86%
  • 5/6 ARM: 7.44%
• Historical Context: Remember when rates dipped to 5.89% in September 2024? Those were the lowest rates we'd seen in two years! While we're not quite there yet, understanding these historical trends helps put current rates into perspective.

Factors Influencing Mortgage Rates

Mortgage rates aren't pulled out of thin air. Several key factors play a crucial role in determining where they land:

1. The Bond Market: Mortgage rates often track the 10-year Treasury yield. When Treasury yields rise, mortgage rates usually follow suit, and vice-versa.
2. Federal Reserve Policy: The Federal Reserve's actions have a significant impact. The Fed influences rates through bond purchases and by setting the federal funds rate. Recently, the Fed has held the federal funds rate steady in the target range of 4.25%-4.5%, but future cuts are anticipated.
3. Inflation: Inflation is a huge driver. When inflation is high, the Fed often raises rates to cool down the economy, which impacts mortgage rates. We are in a high inflationary setting right now.
4. Economic Growth: A strong economy generally leads to higher interest rates as demand for borrowing increases. Conversely, a slowing economy can put downward pressure on rates.

What the Fed's Recent Actions Mean for You

The Federal Reserve's moves are always closely watched because they have a ripple effect throughout the entire economy. Here's what you need to know:

• Recent Rate Cuts: The Fed cut rates three times in late 2024. This bought some relief to the market.
• Future Expectations: In June 2025, the Fed reaffirmed plans for two more rate cuts in 2025. However, there's debate among policymakers about when these cuts will happen. Some want to move as early as July or September, while others prefer to wait.
• Impact of Tariffs: Tariffs introduced might bring inflation, which will impact the timing of rate cuts indirectly.
• Economic Slowdown: The is expecting moderate GDP growth of 1.4% for 2025, along with a slight increase in unemployment. These factors could prompt the Fed to cut rates later this year.

How to Get the Best Mortgage Rate

Okay, so you know what's driving mortgage rates today and where to find the lowest ones. Now, how do you actually get the best rate for yourself? Here are some tips:

• Improve Your Credit Score: This is the single biggest factor you can control. Pay your bills on time, keep your credit utilization low, and avoid opening too many new accounts at once.
• Save for a Larger Down Payment: A larger down payment reduces the lender's risk and can result in a lower interest rate.
• Shop Around and Compare Rates: Don't just go with the first lender you find. Get quotes from multiple lenders and compare their rates, fees, and terms.
• Consider Different Loan Types: Explore options like fixed-rate mortgages, adjustable-rate mortgages (ARMs), and FHA loans to see which one best suits your needs.
• Negotiate: Don't be afraid to negotiate with lenders. See if they're willing to match or beat a competitor's offer. Sometimes all you have to do is ask!.
• Lock in Your Rate: Once you find a rate you're happy with, lock it in to protect yourself from potential rate increases. But watch out if you are expecting a drop in the rates. Locking in could mean a missed opportunity.

Will Mortgage Rates Go Down?

That's the million-dollar question, isn't it? While it's impossible to predict the future with certainty, here's what analysts are saying:

• Projected Declines: If the Fed follows through with its planned rate cuts, analysts project that 30-year mortgage rates could decline to around 5% by 2028.
• Market Expectations: Bond markets are currently pricing in a relatively low chance of a rate cut in July 2025, with higher odds for cuts in September or October.
• Next Steps: Keep an eye on the Fed's upcoming meeting on July 30, 2025. While no immediate rate cut is expected, policymakers' signals could provide clues about the timing of future cuts.

Looking to buy a home? Figuring out mortgage rates today can feel like navigating a maze. As of Wednesday, the states with the cheapest 30-year new purchase mortgage rates are New York, California, Colorado, New Jersey, Washington, Florida, and Georgia. These states average between 6.75% and 6.87%. Let's break down what's happening with mortgage rates right now and why some states have lower rates than others.

Mortgage Rates Today: The States Offering Lowest Rates

National Mortgage Rates: A Snapshot

Nationally, mortgage rates took a small dip after climbing for three days. The average for a 30-year fixed-rate mortgage is currently around 6.90%. While this is lower than the recent peak of 7.15% in mid-May, it's still higher than the low of 6.50% we saw back in March 2025. Remember back in September 2024? Rates hit a two-year low of 5.89% then!

To give you a broader look at some other national averages:

Loan Type	New Purchase Rate
30-Year Fixed	6.90%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.95%
Jumbo 30-Year Fixed	6.87%
5/6 ARM	7.45%

(Data from Zillow)

Why Do Mortgage Rates Vary by State?

You might be wondering why mortgage rates differ so much depending on where you live. There are several reasons:

• Different Lenders: Not all lenders operate in every state. This means that the level of competition between lenders can vary. More competition tends to mean lower rates.
• Credit Scores: Average credit scores can vary from state to state. Areas with higher average credit scores might see slightly lower rates overall.
• Average Loan Size: The average amount people borrow for a mortgage can also influence rates. Larger loan sizes might come with different risk profiles for lenders.
• State Regulations: Some states have specific regulations related to mortgages. These regulations can affect the costs and risks for lenders.
• Lender Risk Management: Lenders have different strategies for managing risk. Some lenders might be more willing to offer lower rates to attract customers, while others prioritize higher profits.

States with the Lowest Mortgage Rates (July 17, 2025)

Let's dive into the states where you'll find today's most affordable 30-year mortgage rates. According to Investopedia's report and Zillow's data, those states include:

• New York: Coming in with one of the lowest average rates. NY always seems to be competitive when it comes to mortgages.
• California: Another state where mortgage rates tend to be more favorable. The sheer size of the market probably has something to do with it.
• Colorado: Also offering competitive new purchase rates.
• New Jersey: A consistently strong contender when it comes to low mortgage rates.
• Washington: The Pacific Northwest is seeing attractive rates for homebuyers.
• Florida: A popular destination, and mortgage rates are among some of the lowest in the US right now.
• Georgia: Rounding out the list with solid rate averages for prospective homeowners.

These states posted average mortgage rates between 6.75% and 6.87%.

States with the Highest Mortgage Rates (July 17, 2025)

On the other end of the spectrum, here are the states where it might cost you a bit more to finance a home:

• Alaska
• West Virginia
• Wyoming
• Rhode Island
• Vermont
• Mississippi
• New Mexico
• South Dakota
• Washington, D.C.

These states showed averages ranging from 6.97% to 7.04%.

National Mortgage Rate: A Summary

Factors	Effect on Mortgage Rates
The Level and direction of the bond market	Mortgage rates generally track the yield on the 10-year Treasury bond. When bond yields rise, mortgage rates tend to follow suit, and when they fall, mortgage rates usually decline.
The Federal Reserve's Monetary Policy	The Federal Reserve influences mortgage rates through its monetary policy, particularly regarding bond buying and funding government-backed mortgages.
Competition Among Mortgage Lenders	The level of competition among lenders and across different loan types can impact mortgage rates. More competition often leads to lower rates, as lenders vie for borrowers' business.
Macro and Micro economic factors	Factors like inflation, employment data, GDP growth, and geopolitical events can also influence mortgage rates.

Why Mortgage Rates Fluctuate: A Deeper Dive

Understanding what moves mortgage rates is key to making informed decisions. Here are some of the biggest factors:

• The Bond Market: Mortgage rates are closely tied to the bond market, particularly the 10-year Treasury yield. When bond yields go up, mortgage rates usually follow.
• The Federal Reserve (The Fed): The Fed plays a significant role. Their policies on things like bond buying and setting the federal funds rate have a direct impact.
• Competition Among Lenders: Just like any business, competition drives prices. The more lenders vying for your business, the better chance you have of getting a lower rate.
• The Economy: Factors like employment, inflation, and overall economic growth all influence mortgage rates. For instance, if the economy is booming, rates tend to rise as inflation fears creep in.

Back in 2021, the Fed was buying a lot of bonds to help the economy through the pandemic. This kept mortgage rates surprisingly low. But as they started to reduce those purchases and then raised the federal funds rate in 2022-2023 to fight inflation, mortgage rates climbed.

The Fed's Current Role: What's Happening Now?

As of now, the Fed has held the federal funds rate steady in a target range of 4.25%-4.5%. They cut rates three times in late 2024, but so far in 2025, they've been holding steady.

• Possible Rate Cuts: Current forecasts suggest the Fed might cut rates twice in 2025, hopefully bringing the federal funds rate down to around 3.9% by the end of the year.
• Inflation and Tariffs: Fed Chair Jerome Powell has expressed concerns about potential inflation resulting from tariffs. This makes the timing of any rate cuts uncertain.
• Economic Slowdown: The economy is expected to grow at a slower pace in 2025 (around 1.4%), and unemployment is projected to rise. These factors could push the Fed to cut rates later this year.

Experts estimate that the 30-year mortgage rate could drop to closer to 5% by 2028 if the Fed follows through with its planned rate cuts. However, remember, these are just projections!

What's Next for Mortgage Rates?

The Fed's next meeting is on July 30, 2025. Most analysts expect them to hold rates steady at that meeting. However, if the economic data shows signs of weakening, they might hint at future rate cuts.

The bottom line is that mortgage rates are still influenced by a lot of factors. It's a good idea to stay informed and keep an eye on what the Fed is doing.

How to Find the Best Mortgage Rate for You

Okay, so what can you do to get the best mortgage rate possible? Here are a few strategies that worked well for me:

• Shop Around: This is the most important thing! Don't just go with the first lender you talk to. Get quotes from several different lenders and compare them carefully. Look beyond the rate itself.
• Improve Your Credit Score: A higher credit score almost always means a lower rate. Check your credit report for errors and try to pay down any outstanding debt.
• Save for a Larger Down Payment: Putting down a larger down payment shows lenders that you're less risky. You might also avoid paying private mortgage insurance (PMI).
• Consider a Shorter Loan Term: While the monthly payments will be higher, a 15-year mortgage usually comes with a lower interest rate than a 30-year mortgage.
• Be Patient: If you don't need to buy a home right away, consider waiting. Interest rates can change quite dramatically based on the current financial situations.

Buying a home is a huge step, and getting the best mortgage rate can save you a lot of money over the life of the loan. Do your research, shop around, and don't be afraid to negotiate.

Are you in the market for a new home or looking to refinance? I know the first thing on everyone's mind is, “What are the mortgage rates looking like?” The states with the cheapest 30-year new purchase mortgage rates are New York, New Jersey, California, Florida, Georgia, and Pennsylvania. These states show average rates between 6.79% and 6.89%. This information can hopefully help you make the best, most informed decision.

Mortgage Rates Today: The States Offering Lowest Rates – July 16, 2025

Why Do Mortgage Rates Vary by State?

It's a question I get asked all the time: why don't we all just pay the same rate? Well, the thing about mortgage rates is that they're not one-size-fits-all. Several factors influence them on a state-by-state basis:

• Different Lenders: Not every lender operates in every state. This means less competition in some areas, potentially leading to higher rates.
• Credit Scores: Average credit scores can vary quite a bit from state to state. Areas with lower average scores tend to see slightly higher rates to offset the increased risk for the lender.
• Average Loan Size: The average amount people borrow also fluctuates. Larger loans can sometimes come with slightly different rate structures.
• State Regulations: Each state has its own set of rules and regulations when it comes to mortgages. These can influence the costs for lenders and, ultimately, the rates they offer.
• Lender Risk Management: Each lender evaluates risk differently. Some might be willing to accept a slightly lower rate for what they deem a safer market, while others may demand a premium.

Where Are Rates the Highest?

On the flip side of the coin, some states are seeing higher rates than others. According to Investopedia's report and Zillow's data, those states include:

• Alaska
• West Virginia
• New Mexico
• Washington, D.C.
• Kansas
• Nebraska
• Vermont
• Iowa
• South Dakota
• Wyoming

These states are currently seeing averages between 6.96% and 7.03%.

National Mortgage Rate Overview

Let's zoom out and take a look at the national mortgage rate picture. It's been a bit of a rollercoaster lately, to say the least.

• 30-Year Fixed: Currently averaging 6.91%, after a recent rise.
• FHA 30-Year Fixed: Averages around 7.55%. FHA loans are often a good option for first-time homebuyers or those with lower credit scores, though they typically carry slightly higher rates.
• 15-Year Fixed: Standing at 5.95%, a faster pay-off, lower overall interest option.
• Jumbo 30-Year Fixed: Rates averaging 6.84%. For those bigger ticket homes, Jumbo loans tend to have varying qualifications.
• 5/6 ARM: Sitting at 7.44%. An adjustable-rate mortgage can be a strategic choice if planned wisely.

Why the Fluctuations?

It's no secret that mortgage rates can be unpredictable. So, what exactly causes them to bounce around?

• Bond Market: Mortgage rates tend to track the 10-year Treasury yield. When yields rise, mortgage rates usually follow suit, and vice versa.
• The Federal Reserve (The Fed): The Fed plays a huge role through its monetary policy. Actions like buying bonds or adjusting the federal funds rate can significantly impact mortgage rates.
• Competition: The competitive landscape among mortgage lenders matters. If lenders are vying for business, they may offer lower rates to attract borrowers.

The Fed's Current Game Plan

The Fed's actions are something I keep a close eye on because they have such a direct impact on mortgage rates.

• Recent Moves: After a series of rate cuts in late 2024, the federal funds rate is currently in a target range of 4.25%-4.5%.
• Future Plans: The Fed is signaling potential rate cuts later in 2025, but the timing and magnitude are still being debated.
• Key Factors: The Fed is closely watching inflation, particularly the impact of tariffs, as well as economic growth and the labor market.
• Political Context: There's also political pressure, with President Trump frequently calling for rate cuts. However, the Fed insists it will remain data-dependent.

What It All Means for You

So, with all of this swirling around, what can you expect?

• Analysts predict that mortgage rates could decline to around 5% by 2028 if the the Fed follows through on rate cuts.
• The bond markets give a 5% chance of a rate cut on the July 30, 2025 meeting and is predicted to follow through on October.

Shopping Around is Key

Whether you're in a state with the lowest rates or not, it's crucial to shop around and get quotes from multiple lenders. If you're in an area with higher rates, you might even consider working with a mortgage broker who can access a wider range of lenders to find the best deal.

Remember to compare not just the interest rate but also the fees and closing costs associated with the loan. Even a slightly lower rate can be offset by higher fees, and vice versa.

Don't Just Look at Rates: Consider the Big Picture

While finding the lowest possible rate is important, it's also worth considering the overall market and your personal financial situation. The cheapest rate isn't always the best option in the long run.

• Fixed-Rate vs. Adjustable-Rate Mortgages: With rates still relatively high, some borrowers are considering ARMs. An ARM can offer a lower initial rate, but it could increase over time as interest rates rise.
• Paying Points: You may have the option to “buy down” your interest rate by paying points upfront. This can be a good strategy if you plan to stay in the home for a long time, as you'll eventually recoup the cost of the points through lower monthly payments.
• Your Credit Score: Your credit score is a significant determinant of the rate you'll qualify for. Take steps to improve your credit score before applying for a mortgage to secure the best possible rate.

Final Thoughts

Navigating the mortgage rate world can be challenging. There's a lot of information to sift through, and the landscape is constantly changing. But by staying informed, understanding the factors that influence rates, and shopping around for the best deal, you can make a smart financial decision and achieve your homeownership goals.

So whether you are in New York, New Jersey, or Alaska, remember the market is dynamic and is constantly changing. So do your research and consult with a professional.

Wondering where to find the best deals on a mortgage right now? As of today, July 15, 2025, the states with the lowest 30-year new purchase mortgage rates are New York, California, New Jersey, North Carolina, Colorado, Minnesota, and Pennsylvania, with rates averaging between 6.69% and 6.85%. Keep reading to find out why mortgage rates vary so much and how you can snag the best deal.

Now, it's not just about getting the lowest rate; it's about understanding why rates are the way they are and finding the best fit for your specific financial situation.

Mortgage Rates Today: The States Offering Lowest Rates – July 15, 2025

Why the Rate Rollercoaster? Understanding Mortgage Rate Fluctuations

Mortgage rates are never set in stone. They bob and weave based on a bunch of interconnected factors, making it feel like you're trying to predict the weather. Here’s a rundown of the key players influencing mortgage rates:

• Bond Market Behavior: Consider mortgage rates linked to the 10-year Treasury yield’s performance like dance partners.
• Federal Reserve (The Fed): The Fed’s decisions on monetary policy, especially when it comes to buying bonds and backing government mortgages, have a huge impact.
• Lender Competition: Intense competition among mortgage lenders and different loan types leads to rate adjustments.

All these factors can shift at once, making it hard to tell exactly what causes rate changes. In fact, the Fed Funds Rate and mortgage rates can sometimes move in opposite directions. But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases, when they raised the benchmark rate 5.25 percentage points over 16 months, mortgage rates surged during this period.

National Mortgage Rate Snapshot

Before we dive into specific states, let's take a quick look at the national average mortgage rates as of today:

Loan Type	New Purchase Rate
30-Year Fixed	6.87%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.90%
Jumbo 30-Year Fixed	6.79%
5/6 ARM	7.47%

Keep in mind that these are just averages. Your individual rate will vary based on your credit score, down payment, and other factors.

The States Where Mortgage Dreams Are a Bit More Affordable

Now, let's get to the good stuff. According to Investopedia's report and Zillow's data, here are the states with the lowest mortgage rates right now:

• New York: NY mortgage rates are at an attractive low.
• California: The Golden State also shines when it comes to lower rates.
• New Jersey: The state boasts of rates between 6.69% and 6.85%.
• North Carolina: NC also offers attractive mortgage rates to homeowners.
• Colorado: Colorado, a state known for its high quality of life, currently, also has some of the lowest rates.
• Minnesota: The state offers rates that are relatively lower than other states.
• Pennsylvania: This state offers interest rates between that are relatively less than other states.

It’s worth noting again that these are averages. Your actual rate might be different. I recommend getting personalized quotes from several lenders in your state to see where you stand.

Why the Regional Disparity? State-by-State Rate Differences Explained

Why do mortgage rates vary so much from state to state? It's not random chance. Several factors are at play:

• Different Lenders, Different Territories: Not all lenders operate in every state. This can limit competition and affect rates.
• Credit Score Variations: The average credit score can vary by state, impacting the risk lenders perceive.
• Loan Size Differences: Average loan sizes can differ, influencing lender pricing strategies.
• State-Specific Regulations: Each state has its own set of rules and regulations for the mortgage industry, affecting lender costs and, ultimately, rates.

The Other Side of the Coin: States With Higher Mortgage Rates

Unfortunately, not every state can offer rock-bottom rates. As of today, these states have some of the highest 30-year new purchase rates. These high-rate states registered averages between 6.93% and 7.00%.

• West Virginia
• Alaska
• Washington, D.C.
• Wyoming
• Kansas
• Mississippi
• Missouri
• New Mexico
• North Dakota
• Oklahoma

If you live in one of these states, don't despair! It just means it's even more important to shop around and compare rates diligently.

Digging Deeper: The Fed's Role and Mortgage Rates

The Federal Reserve continues to play a crucial role in shaping mortgage rates. To understand where we are today, let's recap recent moves and outlook.

Recent Fed Actions and How They Affect You

• Rate Holds in 2025: Through June 2025, the Fed has held rates steady, maintaining the federal funds rate in a target range of 4.25%–4.5%.
• Future Rate Cuts: It is widely expected that the Fed will make further rate reductions.

Key Influences on Rate Policy

• Inflation and Tariffs: Factors like tariffs and their effect on inflation are closely monitored, although they are considered temporary shocks.
• Economic Slowdown Expected: Projected weaker GDP growth and increasing unemployment could pressure the Fed to implement rate cuts.
• Political Considerations: Despite external pressures for rate cuts, the Fed remains focused on economic data.

How to Snag the Best Mortgage Rate: My Top Tips

Alright, after all that data and analysis, what can you do to get the best possible mortgage rate? Here's my practical advice:

• Shop Around, Shop Around, Shop Around: This is the single most important thing you can do. Get quotes from multiple lenders – banks, credit unions, and online lenders. Don't just settle for the first offer you see.
• Boost Your Credit Score: A higher credit score means a lower risk for lenders, which translates to a better rate for you. Check your credit report for errors and work on paying down debt.
• Increase Your Down Payment: A larger down payment reduces the amount you need to borrow, which can also lead to a lower rate. Plus, you'll build equity faster.
• Consider a Shorter Loan Term: While the monthly payments will be higher, a 15-year mortgage typically comes with a lower interest rate than a 30-year mortgage.
• Don't Be Afraid to Negotiate: Mortgage rates aren't always set in stone. If you have a strong credit profile and have done your research, don't be afraid to ask lenders to match or beat a competitor's offer.
• Understand the Fine Print: Pay attention to the fees and closing costs associated with the mortgage. Sometimes, a slightly higher rate with lower fees can be a better deal overall.
• Work with a Mortgage Broker: A mortgage broker can shop around on your behalf and find the best rates and terms for your specific needs.

The Bottom Line: Knowledge is Power

The mortgage market can feel overwhelming, but understanding the factors that influence rates and knowing how to shop smart can empower you to make informed decisions. By staying informed and taking a proactive approach, you can increase your chances of securing a great mortgage rate and achieving your homeownership dreams.

Looking for the best mortgage rates today, July 11, 2025? You're in the right place. Currently, the states boasting the lowest 30-year new purchase mortgage rates are New York, California, Virginia, Washington, Colorado, Massachusetts, and Pennsylvania, with averages ranging from 6.57% to 6.78%. Let's explore the factors that influence these rates and how you can secure the most favorable mortgage deal.

Mortgage Rates Today: The States Offering Lowest Rates

Understanding Today's Mortgage Rate Picture (July 11, 2025)

While national averages provide a general overview, mortgage rates can vary significantly from state to state. Why? Because different lenders operate in different regions. Each lender has varying risk management strategies. State-level regulations, credit scores, and average loan sizes also play roles.

According to Investopedia's report and Zillow's data, here's a quick snapshot of where rates stand today:

• National Average (30-Year Fixed): 6.83%
• The states with the cheapest 30-year new purchase mortgage rates: New York, California, Virginia, Washington, Colorado, Massachusetts, and Pennsylvania with rates between 6.57% and 6.78%
• States with Highest Rates: Alaska, Alabama, South Dakota, Kansas, West Virginia, Wyoming, Oklahoma, and Iowa ranging from 6.89% to 6.96%
• Compared to Mid-May 2025: Rates are down from a high of 7.15%
• Compared to March 2025: Rates are higher than the 6.50% low
• Compared to September 2024: Rates are higher than the two-year low of 5.89%

National Averages of Lenders' Best Mortgage Rates

Loan Type	New Purchase
30-Year Fixed	6.83%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.84%
Jumbo 30-Year Fixed	6.80%
5/6 ARM	7.48%

These are national averages. They serve as a good starting point. However, it's vital to remember that these are averages, and your individual rate will differ.

Why the Rate Discrepancy Between States?

As I mentioned, various factors cause mortgage rates to fluctuate across states. Let's break them down:

• Lender Presence: Not all lenders operate in every state. Limited competition can lead to higher rates.
• State Regulations: Each state has different laws governing mortgages. Some states may have regulations that increase lender costs.
• Credit Score Averages: States with lower average credit scores might see slightly higher rates. Lenders perceive lending in such regions as riskier. Credit scores directly impact the mortgage rates.
• Average Loan Size: Loan size correlates with rates. This is because operational costs are the same, regardless of the size of the loan.
• Risk Management: Lenders' assessment of risk is subjective. It depends on their appetite for risk.

States with the Lowest Mortgage Rates: What's Their Secret?

So, what makes New York, California, Virginia, Washington, Colorado, Massachusetts and Pennsylvania so attractive in terms of rates? It's usually a combination of several factors:

• Strong Competition: These states often have many active lenders competing for business.
• Higher Credit Scores: Generally, these states have residents with higher average credit scores.
• Stable Housing Markets: Perceived stability in the housing market makes lenders feel more secure.
• Favorable Regulations: Some may have regulations that streamline the mortgage process, reducing costs for lenders.

A Closer Look

Let's consider California. It has a huge real estate market and stiff competition among mortgage lenders. This competition helps drive rates down. Also, California's economy is strong and dynamic. That helps reassure lenders.

Don't Get Fooled: Understanding Advertised Rates

You've probably seen super-low mortgage rates advertised online. These teaser rates can be tempting. But here’s what I've learned over the years: they're not always what they seem.

• Points: Many advertised rates require you to pay points upfront. Each point equals 1% of the loan amount.
• Credit Score: These rates usually assume you have a near-perfect credit score. This is something that not many people possess
• Loan Size: Some advertised rates are only available for smaller loan amounts.
• Hypothetical Borrower: The advertised low rates are usually aimed at attracting a hypothetical borrower. This borrower is least likely to default on the loan.

The Rates You See Here Are Averages

It's important to emphasize that the rates I'm discussing in this article are averages. The rate you actually get depends on your specific circumstances. This includes credit score, income, debt-to-income ratio, down payment, and the type of loan you choose.

National Mortgage Rate Trends: What's Influencing the Market?

Mortgage rates don't exist in a vacuum. They're influenced by a myriad of factors, including:

• Bond Market: Mortgage rates closely track the 10-year Treasury yield.
• Federal Reserve (The Fed): The Fed's monetary policy significantly impacts rates. The central bank manages monetary policy by setting the federal funds rate.
• Inflation: Rising inflation pushes rates higher.
• Economic Growth: A strong economy may lead to higher rates.
• Competition Among Lenders: More competition can lead to lower rates, as lenders vie for your business.

Recent Fed Actions: A Deeper Dive

The Fed has been a key player in shaping mortgage rates. Here's a quick recap of recent actions and their potential impact:

• Rate Cuts in Late 2024: Three rate cuts lowered the federal funds rate. This had a soothing effect in the market.
• 2025 Outlook: The Fed plans two more rate cuts in 2025. But, when exactly they'll happen is still under debate. There are many variables and uncertainty involved in the whole process. The first cut may be in September 2025.
• Tariffs and Inflation: Tariffs could lead to higher inflation. This might impact the timing of rate cuts.
• Economic Slowdown: A slowing economy could prompt the Fed to cut rates sooner rather than later.
• Political Pressure: Political pressure doesn't directly influence the Fed. Although the central bank maintains its independence when making decisions.

Key Influences on Fed Policy

Factor	Impact
Tariffs	Could cause inflation and delay rate cuts
Economic Slowdown	Could prompt earlier rate cuts
Political Pressure	Minimal direct influence, Fed emphasizes data dependence

What About the Future?

Projections suggest that rates may gradually decline in the coming years. This is based on the assumption that the Fed will continue its easing cycle. However, remember that these are just projections. Unexpected events can throw things off course.

Taking Advantage of Lower Rates: Refinancing Your Mortgage

If you already own a home, refinancing your mortgage could save you money. Refinancing involves replacing your existing mortgage with a new one, ideally at a lower interest rate.

When lower rates become available, it's something you should think about. Evaluate your options. Do the Math.

Check to see if the overall savings outweigh the costs.

Tips for Securing the Best Mortgage Rate

Securing the best rate requires some effort. So, here's my advice:

• Improve Your Credit Score: This is the most important factor. Pay your bills. Pay on time.
• Save for a Larger Down Payment: This reduces the risk for the lender.
• Shop Around: Get quotes from multiple lenders.
• Consider Different Loan Types: Explore fixed-rate, adjustable-rate, and FHA loans.
• Negotiate: Don’t be afraid to negotiate with lenders.
• Get Pre-Approved: This shows sellers that you’re a serious buyer.

The Impact of Down Payments

Down Payment	Impact on Interest Rate
5%	Higher risk, higher rate
20%	Lower risk, potentially lower rate

Your financial health is worth investing in. Taking steps for credit and savings is worth considering. This will go a long way in helping you secure competitive mortgage rates.

Final Thoughts

Mortgage rates are constantly changing. Keep an eye on the market and be prepared to act when the time is right. Don’t be afraid to seek help. Work with a qualified mortgage broker or financial advisor. They can help navigate the complexities of the mortgage market.

Keep gathering information. Stay informed. And remember, finding the right mortgage is possible with the right approach.

If you're in the market to buy a home, you're probably wondering, “Which states have the lowest mortgage rates today?” As of July 10, 2025, the states boasting the cheapest 30-year new purchase mortgage rates are New York, California, Connecticut, New Jersey, Florida, Georgia, North Carolina, Oregon, and Pennsylvania. These states offer rates hovering between 6.56% and 6.79%.

Mortgage Rates Today: The States Offering Lowest Rates – July 10, 2025

The Great Rate Divide: Cheapest vs. Most Expensive

While some states are enjoying relatively lower rates, others are facing a steeper climb. On the flip side, according to Investopedia's report and Zillow's data, the states with the highest 30-year mortgage rates are Alaska, North Dakota, West Virginia, Iowa, Mississippi, New Mexico, Arkansas, South Dakota, Vermont, and Wyoming. Homebuyers in these states are looking at rates in the 6.90% to 6.97% range.

Why such a big difference? It's not just random chance. Several factors come into play, creating this geographical rate disparity.

Why the State-by-State Rate Variations?

Mortgage rates aren't set in stone; they fluctuate based on a variety of factors. One key component is where you live. Here's a breakdown of why rates differ from state to state:

• Lender Presence: Not all lenders operate in every state. States with more competition among lenders might see slightly lower rates as they vie for your business.
• Risk Management Strategies: Different lenders have their own ways of assessing risk, and this can influence the rates they offer.
• Credit Score Averages: States with higher average credit scores tend to see slightly lower rates overall.
• Average Loan Size: Believe it or not, the average loan size in a state can also impact rates. Larger loan amounts might be viewed differently by lenders.
• State Regulations: Each state has its own set of regulations governing the mortgage industry, which can indirectly affect rates.

Let me give you an example. Certain states, like California and New York, often have higher average home prices, leading to larger loan amounts. This can influence risk assessment by lenders, and consequently, rates.

National Mortgage Rate Snapshot: July 10, 2025

Even though state-specific rates vary, it's important to keep tabs on the national averages. As of today, July 10, 2025, here’s the national landscape:

Loan Type	Interest Rate
30-Year Fixed (New Purchase)	6.83%
FHA 30-Year Fixed	7.55%
15-Year Fixed	5.84%
Jumbo 30-Year Fixed	6.83%
5/6 ARM	7.50%

These numbers give you a benchmark. Remember, these are national averages. Your actual rate will depend on your specific financial situation.

Rate Movement: A Recent Dip After Days of Increase

There's been a little movement in the national average. After climbing for four straight days, the average 30-year new purchase mortgage rate dipped slightly today, dropping 4 basis points to 6.83%. While it's a small step, it's a welcome change.

To put things in perspective, rates are better than in mid-May when they hit a one-year high of 7.15%. However, they are still higher than back in March, when we saw a yearly low average of 6.50%. So, the market is constantly changing.

Decoding Mortgage Jargon

Before diving deeper, let's quickly define some key terms:

• APR (Annual Percentage Rate): This is the total cost of your loan, including interest and fees, expressed as an annual rate.
• Fixed-Rate Mortgage: The interest rate stays the same for the entire loan term.
• ARM (Adjustable-Rate Mortgage): The interest rate is fixed for a period, and then adjusts periodically based on market conditions.
• Basis Point: A unit equal to 1/100th of 1%, used to denote changes in interest rates.

Factors influencing mortgage rates in H2 2025 : The Fed's Role and More

So, what affects these fluctuating mortgage rates? It’s a tangled web of economic influences, but here are a few key drivers:

• The Bond Market: Mortgage rates often follow the yields on 10-year Treasury bonds. When bond yields rise, mortgage rates tend to follow suit.
• Federal Reserve (The Fed): The Fed's monetary policy can have a significant impact. Actions like buying bonds or adjusting the federal funds rate (the rate banks charge each other for overnight lending) influence borrowing costs.
• Inflation: Persistent high inflation erodes purchasing power and generally leads to higher interest rates.
• Economic Growth: A strong, expanding economy can push interest rates upward as demand for credit increases.
• Competition: The level of competition among lenders and across different loan types also plays a role.

The Fed's Ongoing Influence:

The Federal Reserve continues to hold significant sway over mortgage rates through its monetary policy. Even as the economic climate shifts from the conditions of pandemic-era stimulus, the Fed still plays a critical role through various measures:

• Recent Fed Actions and Rate Trajectory: The Fed cut rates three times in late 2024 bringing the federal funds rate within the target of 4.25%–4.5%. This rate remained constant in June 2025.
• 2025 Outlook: The Fed plans indicate two rate cuts in 2025. While certain officials advocate for commencing cuts as early as July 2025, others express inclinations towards waiting till September or later.

Key Influences on Fed Policy

• Tariffs and Inflation: According to Fed Chair Jerome Powell, Trump’s tariffs are expected to cause “meaningful” inflation.
• Economic Slowdown: GDP growth is projected at 1.4% for 2025. Weak consumer spending and cooling labor markets could lead to cuts later this year.
• Political Pressure: President Trump has often criticized Powell, asking for robust cuts to bring down government debt costs. Yet the Fed has strongly emphasized data dependence.

What's Next? : The Fed’s subsequent meeting on July 30, 2025 is likely to result in a hold.

Snagging the Best Rate: Tips from My Experience

Okay, so you know which states have the lowest rates and understand the factors influencing them. Now, let's talk about how to improve your odds of securing the best possible rate:

• Shop Around: This is THE most important tip. Don't settle for the first offer you receive. Get quotes from multiple lenders—banks, credit unions, and online mortgage companies.
• Improve Your Credit: A higher credit score translates to a lower interest rate. Check your credit report for any errors and work on paying down debt.
• Save for a Larger Down Payment: A bigger down payment reduces the lender's risk, often resulting in a better rate. It also eliminates or reduces the cost of private mortgage insurance (PMI).
• Consider a Shorter Loan Term: A 15-year mortgage typically comes with a lower interest rate than a 30-year mortgage, although your monthly payments will be higher.
• Negotiate: Don't be afraid to negotiate with lenders. If you have a competing offer, let them know. They might be willing to lower their rate to win your business.
• Lock in Your Rate: Once you find a rate you like, lock it in. This protects you from potential rate increases while your loan is being processed. Rate locks usually last for 30 to 60 days.

I've seen countless people save significant money by simply comparison shopping and improving their credit scores. It takes some effort, but the payoff is well worth it.

Understanding Advertised vs. Actual Rates

Beware of those tempting “teaser rates” you see advertised online. These are often cherry-picked to be the most attractive and may come with strings attached, like paying points upfront or requiring an ultra-high credit score.

The rate you actually secure will depend on your credit score, income, debt-to-income ratio, loan amount, and down payment.

Final Thoughts: Stay Informed and Be Proactive

The mortgage market is a dynamic place. Rates are constantly shifting, influenced by a complex interplay of economic factors. The key to success is staying informed, being proactive, and knowing your financial situation inside and out. And most importantly, work with a trusted mortgage professional who can guide you through the process.