States With Lowest Mortgage Rates Today – May 30, 2025

Looking for the states with the lowest mortgage rates today, May 30, 2025? As of today, the states offering the most affordable 30-year fixed-rate mortgages for new purchases are New York, California, North Carolina, Texas, Colorado, Washington, and Florida. These states boast average rates ranging from 6.78% to 6.98%. Let's dive deeper into why these states are leading the pack and what it means for you if you're looking to buy a home.

States With Lowest Mortgage Rates Today – May 30, 2025

Alright, let's break down what's happening with mortgage rates as of today. It feels like just yesterday rates were soaring, and while we're not back to the rock-bottom levels of a few years ago, there's definitely some movement to pay attention to. Nationally, the average rate on a 30-year fixed-rate mortgage for new purchases is sitting around 7.00% (Zillow).

That's down a bit from last week's average of 7.15%, which was actually the highest we'd seen since May of 2024. We need to remember that back in March of 2025, these rates were actually at 6.50%— the lowest of the year thus far. The lowest point in recent times was September when rates sunk to a two-year low of 5.89%.

Why Do Mortgage Rates Vary by State?

You might be scratching your head, wondering why mortgage rates aren't the same across the board. It's a valid question! Several factors contribute to these differences. According to Investopedia, it's due to a combination of things:

• Lender Presence: Not all lenders operate in every state. The level of competition can affect rates.
• State-Level Regulations: Each state has its own regulations around mortgages.
• Credit Scores: Average credit scores in a state can influence rates.
• Average Loan Size: This can vary by state based on housing costs.
• Lender Risk Management: Lenders have different strategies for managing risk.

Essentially, it all boils down to the fact that the mortgage market is complex and hyper-local.

The States With the Lowest Rates: A Closer Look

So, why are New York, California, North Carolina, Texas, Colorado, Washington, and Florida coming out on top right now? Here's my take:

• New York & California: These states are economic powerhouses with high demand for housing. While that usually means higher prices, it also attracts a lot of lenders, creating competition and potentially driving down rates. However, keep in mind that even with lower rates, the overall cost of buying a home in these states can be significantly higher.
• Texas, North Carolina, & Florida: These states have experienced significant population growth in recent years. This influx of new residents has fueled the housing market, again creating opportunities for lenders and potentially more competitive rates. Plus, some of these states have more business-friendly environments, which can also play a role.
• Colorado & Washington: Strong economies with growing tech sectors. These states are attractive to young professionals, leading to stable housing markets.

States With the Highest Rates

Now, let's flip the coin. The states with the highest 30-year mortgage rates right now are: Alaska, West Virginia, New Mexico, Mississippi, Montana, North Dakota, and Washington, D.C. The average rates in these areas range from 7.07% to 7.11%.

• Smaller Markets: States like Alaska, Montana, and North Dakota often have smaller populations and fewer lenders, which can translate to less competition and higher rates.
• Economic Factors: States like West Virginia and Mississippi might face economic challenges that make lenders perceive them as higher risk.
• Regulatory Environment: It's possible the regulatory environment in D.C. contributes to the higher rates

National Mortgage Rate Averages

Loan Type	New Purchase
30-Year Fixed	7.00%
FHA 30-Year Fixed	7.37%
15-Year Fixed	6.04%
Jumbo 30-Year Fixed	6.94%
5/6 ARM	7.25%

Source: Zillow Mortgage

Important Considerations When Shopping for a Mortgage

Okay, so you know which states have the lowest rates, but here's the thing: those are just averages. Your rate will depend on your individual circumstances.

• Credit Score: This is HUGE. The better your credit score, the lower your rate will be.
• Down Payment: A larger down payment can often get you a better rate.
• Debt-to-Income Ratio (DTI): Lenders want to see that you can comfortably afford your mortgage payments.
• Loan Type: Different loan types (e.g., FHA, VA, conventional) come with different rates and requirements.
• Points: You can often pay “points” upfront to lower your interest rate.

Why Did Rates Change?

Understanding the overall trends is more complicated. Various reasons could trigger a rise or fall in Mortgage rates, such as:

• Bond Market: Mortgage rates often track the 10-year Treasury yield.
• Federal Reserve: The Fed's monetary policy impacts interest rates overall.
• Competition: Lender competition can play a part.

My Advice: Shop Around and Be Prepared

My number one piece of advice is always to shop around. Get quotes from multiple lenders and compare them carefully. Don't just look at the interest rate; consider the fees, closing costs, and overall terms of the loan. It might take extra time and effort, but it's worth it. Make sure to get pre-approved. Also, always compare rates regularly, no matter the type of home loan you seek.

Looking Ahead: What to Expect

Predicting the future of mortgage rates is always tricky. The Federal Reserve could keep rates steady for a prolonged period of time. We could also see more rate cuts later in the year if the economy slows down. All of this information might be overwhelming but remember, it’s important to stay informed.