U.S. States With Lowest Mortgage Rates Today – June 24, 2025

Looking for the states where you can snag the best deal on a mortgage right now? As of today, June 24, 2025, the U.S. states with the lowest mortgage rates for a 30-year new purchase are Colorado, Massachusetts, New York, Utah, California, Virginia, Washington, and Maryland, with rates averaging between 6.77% and 6.81%.

U.S. States With Lowest Mortgage Rates Today – June 24, 2025

Buying a home is a huge decision, and understanding mortgage rates is a critical part of the process. I know, it can feel overwhelming, but don't worry, I'm here to break it down for you. Mortgage rates are constantly in flux, influenced by a whole host of economic factors. And they can vary significantly from state to state, so it's crucial to stay informed to find the best deal for you.

Why Do Mortgage Rates Vary By State?

It's a fair question. Why doesn't everyone just get the same rate, no matter where they live? Well, several factors contribute to these state-level differences. Mortgage rates vary by state primarily because:

• Lender Presence: Not all lenders operate in every state. This means competition can be stronger in some areas than others, and that competition can drive rates down.
• Credit Score Variations: Average credit scores differ from state to state. Lenders will perceive different levels of risk depending on the creditworthiness of a specific state’s population.
• Average Loan Size: Just as credit scores may differ, the average loan size can also be impacted by differing states. This could also affect the lender.
• State Regulations: Mortgage regulations aren't uniform across the country. Some states have stricter rules than others, which can impact lenders' costs and, ultimately, the rates they offer.
• Risk Management: Lenders each have different risk management tactics that can influence the rates they offer.

Think of it like this: imagine two grocery stores in different towns. One town has more competition and stricter regulations on food safety, while the other doesn't. The store in the more competitive, regulated town might have to offer lower prices and higher quality to attract customers. Mortgage rates work in a similar way.

The Best and Worst: A State-by-State Breakdown

As Investopedia's report highlights, let's dive deeper into which states are offering the best and least attractive mortgage rates right now.

States with the Lowest 30-Year New Purchase Mortgage Rates:

State	Average Rate
Colorado	6.77%
Massachusetts	6.78%
New York	6.79%
Utah	6.79%
California	6.80%
Virginia	6.80%
Washington	6.80%
Maryland	6.81%

States with the Highest 30-Year New Purchase Mortgage Rates:

State	Average Rate
Alaska	6.93%
West Virginia	6.95%
North Dakota	6.96%
Iowa	6.97%
Kansas	6.99%
Maine	7.00%
Mississippi	7.00%
Nebraska	7.01%
Vermont	7.02%

Keep in mind that these are averages. Your individual rate could differ based on your unique financial situation.

What About National Mortgage Rate Averages?

While it's interesting to see state-level differences, it's also important to keep an eye on the national picture. According to recent data, the national average for a 30-year new purchase mortgage has fallen to 6.86% today, a two-and-a-half-month low. This is a welcome change from the 7.15% peak we saw in mid-May 2025.

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

• 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: 7.09%

As you can see, there's a range of options, each with its own pros and cons. Deciding which loan is right for you requires weighing your short-term and long-term financials, your long-term housing goals, and level of risk tolerance.

Don't Get Duped by “Teaser Rates”

You've probably seen super-low mortgage rates advertised online. These are often called “teaser rates,” and they can be misleading. Investopedia points out that these rates are often “cherry-picked” as the most attractive, and they might come with hidden costs or strict requirements.

For example, some teaser rates require you to pay “points” upfront (each point is 1% of the loan amount). Others might be based on a borrower with a near-perfect credit score or a smaller-than-typical loan amount.

The rate you ultimately secure will be based on factors like your credit score, income, and more. So, it can vary significantly from the averages you see here.

What's Driving These Rate Changes?

Understanding why mortgage rates go up or down can help you make smarter decisions about when to buy or refinance. Several factors are at play:

• The Bond Market: Mortgage rates tend to follow the direction of the bond market, especially yields on 10-year Treasury bonds. When bond yields rise, mortgage rates usually follow suit.
• The Federal Reserve: The Fed's monetary policy has a big impact. The Fed influences mortgage rates through bond buying and funding government-backed mortgages.
• Competition: The level of competition between mortgage lenders can also affect rates. When lenders are competing fiercely for business, they may lower rates to attract borrowers.

The Fed Factor: What's the Latest?

The Federal Reserve's actions play a particularly important role in the mortgage market.

After aggressively raising interest rates in 2022 and 2023 to combat decades-high inflation, the Fed paused rate hikes for a while. In September 2024, they decreased the rate. In 2025, the Fed continued on its previous path of holding rates steady, reflecting caution about the ongoing economic situation.

These actions, directly and indirectly, influence mortgage rates. Even though the fed funds rate often does not directly influence mortgage rates, they do tend to move in similar directions. Economists keep a close eye on the actions that the Federal Reserve undertakes to get an idea of where rates will go in the future.

What About the Future? Expert Predictions

What does 2025 and beyond hold for mortgage rates? According to Fannie Mae's Forecast, mortgage rates are predicted to end 2025 at 6.5% and 2026 at 6.1%.

Keep in mind that these are just forecasts, and the future is never certain. Economic conditions can change quickly, throwing even the best predictions off course.

My Advice: Shop Around and Be Prepared

So, what's the takeaway?

• Mortgage rates vary by state. Don't assume that the national average applies to you.
• “Teaser rates” can be misleading. Focus on the rate you're actually offered, not the one advertised online.
• Stay informed about economic trends and the Federal Reserve's actions.
• Get pre-approved: This will give you a clear idea of how much you can borrow and what interest rate you can expect.
• Don't be afraid to negotiate. Mortgage lenders want your business, so see if you can negotiate a better rate or terms.

As someone who has been in the real estate business for 20+ years, I always tell people, “Knowledge is power,” and when it comes to mortgages, that's especially true. Good luck with your home-buying journey!