Mortgage Rates by State in July 2025: Average Rates from $6.81% Nationwide
Explore the latest mortgage rate trends for July 26, 2025, highlighting states with the lowest and highest average rates. Understand how regional factors impact your home loan costs and get expert tips on finding the best mortgage rates today.
New York, Florida, and California continue to lead with the lowest average mortgage rates as of July 26, 2024.
On Thursday, the states offering the most affordable 30-year fixed mortgage rates for new home purchases included New York, Florida, California, Colorado, Indiana, and Tennessee. By contrast, West Virginia, Alaska, and Iowa recorded the highest average rates.
Mortgage rates differ significantly depending on the state due to various regional factors. These include differences in lender competition, local credit score distributions, average loan amounts, and state-specific regulations. Additionally, lenders' risk assessment methods contribute to the variation in rates offered.
Because mortgage rates can vary widely among lenders, it's crucial to compare multiple offers to secure the best mortgage deal tailored to your financial profile and loan type.
Important Notice
The mortgage rates presented here represent state and national averages and won't directly match the promotional teaser rates often advertised online. Teaser rates are typically the lowest possible offers reserved for ideal borrowers with top credit scores or smaller loan amounts and may require upfront points or fees. Your actual rate depends on your creditworthiness, income, and other individual factors.
National Mortgage Rate Averages
The national average mortgage rate for 30-year fixed loans on new purchases inched up slightly to 6.81% on Thursday, marking a modest increase of 0.03%. This figure remains near the lowest point since early spring and shows improvement compared to early July rates that were above 7%.
Use our Mortgage Calculator to estimate monthly payments for various loan scenarios and make informed decisions.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates are shaped by a complex blend of economic and industry factors, including:
- The performance of the bond market, particularly 10-year Treasury yields
- Federal Reserve monetary policy, including bond purchasing programs and support for government-backed loans
- Competition among lenders and across different mortgage products
Because multiple factors often change simultaneously, pinpointing one single cause for rate movements is challenging.
In 2021, mortgage rates stayed relatively low due to the Federal Reserve's aggressive bond-buying efforts aimed at mitigating pandemic-related economic impacts. However, starting in late 2021, the Fed gradually reduced bond purchases, completing the taper by March 2022.
From then through mid-2023, the Fed raised the federal funds rate multiple times to combat high inflation. Although this benchmark rate doesn't directly set mortgage rates, the rapid increases indirectly pushed mortgage rates higher.
The Fed has maintained the federal funds rate steady since July 2023, with inflation easing but still above the 2% target. Future rate changes will depend on inflation trends and economic conditions, with four more Fed meetings scheduled in 2024, the next concluding on July 31.
How We Collect Mortgage Rate Data
The mortgage rate averages presented are sourced from Zillow’s Mortgage API, based on an 80% loan-to-value ratio (20% down payment) and borrower credit scores between 680 and 739. These averages provide realistic expectations for qualified borrowers and differ from promotional rates often advertised. © Zillow, Inc., 2024. Use subject to Zillow Terms of Use.
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