Latest Refinance Rate Per State - June 16, 2025 (Re-arrangement)

Swapping States for Lower and Higher 30-year Refinance Rates

There's a clear divide between states offering the cheapest and the most expensive 30-year refinance rates. On Friday, the wallet-friendly states registered an average range of 6.82% to 7.03% for refinances, while the expensive ones averaged between 7.15% and 7.20%. So where should you be looking to save on your mortgage?

Narrowing it down, the thriftiest states with the lowest rates include New York, California, Florida, Connecticut, Maryland, Texas, North Carolina, and Washington. It's essential to remember that mortgage refinance rates can significantly vary among lenders, which is why shopping around is a wise decision.

On the flip side, the higher-priced states include West Virginia, Arizona, Hawaii, Alaska, Montana, South Dakota, Kentucky, Nevada, New Jersey, and Rhode Island. So if you find yourself in one of these states, be prepared to face slightly higher rates.

Regional Variations in Mortgage Rates

A myriad of reasons underlies why refinance rates in various states differ. Different lenders operate in specific regions, and rates might be subject to state-level variations in credit scores, average loan sizes, and regulations. Additionally, lenders may employ diverse risk management strategies, further affecting the rates they offer.

Navigating the Best Mortgage Refinance Option

Given the vast array of lenders and ever-changing rates, seeking out your best mortgage refinance option is crucial. Regularly comparing rates, regardless of the mortgage type you're interested in, is always smart. Remember, even a slight difference in interest rates can add up to considerable savings over the life of your loan.

National Mortgage Refinance Rate Averages - A Rollercoaster Ride

30-year refinance mortgage rates saw a four-day straight decline before nudging up slightly on Friday, settling at an average of 7.09%. Though this number still represents an improvement compared to the peak of 7.32% in May, it is still relatively higher when compared to historical lows.

In March, rates dipped to their cheapest 2025 level of 6.71%, and last September, they touched a two-year low of 6.01%. Keep in mind that these numbers are influenced by various macroeconomic and industry factors, such as the level and direction of the bond market, the Federal Reserve's monetary policy, and competition between mortgage lenders.

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With different states offering contrasting refinance rates, it's essential to shop around and compare rates from multiple lenders to find the most favorable deal. So, whether you're looking for a low-cost refinance in New York or figuring out how to navigate the expensive market of West Virginia, stay informed and vigilant for the best rates!

Enrichment Data:

Several essential factors contribute to the discrepancy in mortgage refinance rates across different states:

State-Level Economic Conditions: The overall economic health of a state, including factors like employment rates, regional housing market trends, and economic growth, can affect lenders' risk perception, ultimately leading to varying refinance rates.
Credit Scores and Borrower Profiles: The typical credit scores and financial stability of borrowers fluctuate from state to state, which significantly impacts the rates lenders offer. Generally, states with higher average credit scores tend to have lower refinance rates as borrowers are considered less risky in the eyes of lenders.
Loan Size and Loan-to-Value (LTV) Ratios: The average loan size and Loan-to-Value ratio (the amount borrowed relative to the home’s value) can differ significantly among states, affecting both the risk and pricing of refinance loans.
State Regulations and Laws: Each state has its specific regulations impacting lending practices, including foreclosure laws, usury limits, and licensing requirements. These regulations affect lenders' costs, which, in turn, influence the rates available to homeowners.
Competition Among Lenders: States with a more robust supply of lenders or a highly competitive financial market often offer lower refinance rates due to increased competition for borrowers.
Local Real Estate Market Dynamics: The supply and demand for housing, local property values, and historical default rates can all contribute to lenders' perceived risk, impacting refinance rates.
Federal and State Incentives: Some states offer unique programs or incentives to homeowners that can help lower effective rates for specific borrowers.

As you consider where to refinance your mortgage, remember that regional variations in mortgage rates can stem from various factors. These include state-level economic conditions, credit scores, loan sizes, state regulations, competition among lenders, local real estate market dynamics, and federal and state incentives. For instance, in states like New York, California, and Florida, you might find lower rates due to healthier economies, higher credit scores, and a competitive lending market. On the contrary, states like West Virginia, Arizona, and Alaska may have higher rates due to weaker economies, lower credit scores, stricter regulations, and less competition. To make the most informed decision, it's crucial to shop around and compare rates from multiple lenders to secure the most favorable deal, whether you're in a low-cost state or a high-priced one.