Lowest Mortgage Rates Today By State - July 23, 2025
Mortgage rates in the United States can vary significantly from state to state, influenced by a combination of national economic factors, local market conditions, and lender competition.
According to a recent report by Investopedia and data from Zillow, as of July 23, 2025, the states with the highest 30-year new purchase mortgage rates are West Virginia, Alaska, Washington D.C., South Dakota, New Mexico, North Dakota, Oklahoma, Rhode Island, and Wyoming. On the other hand, the states with the lowest rates are New York, Colorado, Washington, California, North Carolina, Tennessee, Florida, New Jersey, and Massachusetts.
The overall state of the U.S. economy, inflation expectations, and the national debt level create baseline pressures on mortgage rates nationwide. The Federal Reserve's monetary policy, particularly changes in the federal funds rate, also has a significant impact on mortgage rates.
Local housing market demand and supply play a crucial role in determining mortgage rates. High demand can drive rates up, while lower demand can push them down as lenders compete for borrowers. Borrowers’ credit scores, debt-to-income ratios, and down payment sizes can also impact the rates offered by lenders locally.
Mortgage type is another factor to consider. Fixed-rate mortgages are influenced by long-term Treasury yields, while adjustable-rate mortgages depend on margin plus an index that responds to market fluctuations and Fed policy changes.
State and regional economic factors, such as employment levels, economic growth rates, and local government policies, can also cause differences in risk assessment by lenders and thus rate adjustments state by state.
As of late June 2025, the 30-year mortgage rate is hovering around 6.8%. This is a significant increase from March 2025, when rates were at their lowest average for the year, around 6.50%. In comparison, rates spiked to 7.15% in May 2025, a one-year high.
Competition among lenders is a key driver of mortgage rates. Lenders will often lower rates to attract more borrowers, particularly when demand for mortgages is high. Every lender has its own approach to managing risk, which can affect mortgage rates.
It's essential to shop around and compare rates from multiple lenders to secure the best deal. Don't just settle for the first rate you see. A mortgage broker can help you compare rates from multiple lenders and guide you through the mortgage process.
Investing in turnkey real estate can help secure consistent returns with fluctuating mortgage rates. If you plan to stay in the home for a long time, some lenders offer lower rates in exchange for paying points upfront. However, this might not be worth it if you plan to move soon.
Experts project that rates could potentially fall to 5% by 2028. The Fed is also 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.
In conclusion, while national economic and monetary factors set a general framework for mortgage rates, local demand, borrower qualifications, and regional economic conditions create the variation in rates seen across different states in the U.S. It's crucial to be aware of these factors when considering a mortgage and to shop around for the best deal.
[1] Investopedia. (2025). How Mortgage Rates Are Determined. Retrieved from https://www.investopedia.com/terms/m/mortgagerates.asp [2] Federal Reserve Bank of St. Louis. (2025). 30-Year Fixed Mortgage Rate. Retrieved from https://fred.stlouisfed.org/series/MORTGAGE30US [3] Zillow. (2025). Current Mortgage Rates. Retrieved from https://www.zillow.com/mortgage-rates/ [4] Bankrate. (2025). Mortgage Rates. Retrieved from https://www.bankrate.com/mortgages/ [5] The Balance. (2025). How Mortgage Rates Are Determined. Retrieved from https://www.thebalance.com/how-mortgage-rates-are-determined-3157767
- The management of mortgage rates in the United States is influenced by a variety of factors, including local real-estate market conditions, national economic factors, and lender competition.
- As of July 23, 2025, states with the highest 30-year new purchase mortgage rates include West Virginia, Alaska, Washington D.C., South Dakota, New Mexico, North Dakota, Oklahoma, Rhode Island, and Wyoming.
- On the other hand, states with the lowest rates are New York, Colorado, Washington, California, North Carolina, Tennessee, Florida, New Jersey, and Massachusetts.
- The state of the U.S. economy, inflation expectations, and the national debt levelcreate baseline pressures on mortgage rates nationwide.
- The Federal Reserve's monetary policy, particularly changes in the federal funds rate, also has a significant impact on mortgage rates.
- Local housing market demand and supply, borrower qualifications, and regional economic conditions create the variation in rates seen across different states in the U.S.
- It's crucial to be aware of these factors when considering a mortgage and to shop around for the best investment opportunity, whether it be a turnkey real-estate property or a mortgage deal.
