Homebuyers in the Four Largest States Now Enjoy the Lowest Mortgage Rates

The states offering the most affordable 30-year mortgage rates for new home purchases this Wednesday are New York, California, Florida, and Texas. These four states, being the most populous in the nation, collectively represent about one-third of the U.S. population.

Following closely are Massachusetts, Oregon, and Pennsylvania, rounding out the seven states with the lowest average mortgage rates, which fall between 6.71% and 6.88%.

Conversely, the states with the highest mortgage rates this Wednesday include Alaska, West Virginia, Washington, D.C., South Dakota, Illinois, Maryland, North Dakota, and Wyoming, where averages range from 6.97% to 7.06%.

Mortgage rates differ by state due to regional lender operations, variations in credit scores, average loan amounts, and state regulations. Additionally, lenders’ individual risk management strategies impact the rates they offer.

Given the wide variation across lenders, it’s essential to shop around and compare rates regularly to secure the best mortgage deal, regardless of the loan type.

Important

The mortgage rates we present here reflect average values and may not match the teaser rates promoted online. These advertised rates often highlight the most favorable scenarios, sometimes requiring upfront points or based on borrowers with exceptional credit scores and smaller loan amounts. Your actual rate will depend on factors such as your creditworthiness and income, so it may differ from these averages.

National Mortgage Rate Averages

After a brief two-day increase, the average 30-year mortgage rate for new purchases has declined over the past two days, settling at 6.91% nationally this Wednesday. This is an improvement from mid-April when rates surged by 44 basis points in one week, reaching 7.14%—the highest since May 2024.

In contrast, March saw a dip to 6.50%, the lowest average rate of 2025, and September experienced a two-year low of 5.89% for 30-year mortgage rates.

Use our Mortgage Calculator to estimate monthly payments under various loan scenarios.

What Influences Mortgage Rate Fluctuations?

Mortgage rates are shaped by a complex mix of macroeconomic and industry-specific factors, including:

• Movements in the bond market, particularly 10-year Treasury yields
• The Federal Reserve’s monetary policies, especially regarding bond purchases and government-backed mortgage funding
• Competition among mortgage lenders and across different loan products

Because these factors often interact simultaneously, pinpointing a single cause for rate changes is challenging.

Throughout much of 2021, macroeconomic conditions kept mortgage rates relatively low, largely due to the Federal Reserve’s extensive bond-buying programs in response to pandemic-related economic challenges. This bond-buying strategy is a key driver behind mortgage rate levels.

However, starting in November 2021, the Fed began tapering its bond purchases, reducing them steadily until reaching zero by March 2022.

Between then and July 2023, the Fed raised the federal funds rate aggressively to combat historically high inflation. While the fed funds rate influences mortgage rates indirectly, they do not always move in tandem.

Nonetheless, the rapid and substantial rate hikes—totaling 5.25 percentage points over 16 months—have contributed to a significant rise in mortgage rates over the past two years.

The Fed held the federal funds rate at its peak for nearly 14 months starting July 2023, then initiated rate cuts: a 0.50 percentage point cut in September, followed by two quarter-point reductions in November and December.

In its third meeting of 2025, the Fed chose to maintain current rates, and further rate cuts may be postponed for several months. With eight rate-setting meetings annually, multiple rate holds throughout 2025 are likely.

How We Monitor Mortgage Rates

The national and state mortgage rate averages presented are sourced from the Zillow Mortgage API, assuming an 80% loan-to-value ratio (20% down payment) and a credit score range of 680–739. These averages represent typical borrower quotes and may differ from promotional teaser rates. © Zillow, Inc., 2025. Use subject to Zillow Terms of Use.

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