On a recent Wednesday, states with the lowest 30-year new purchase mortgage rates included New York, Colorado, Connecticut, California, Massachusetts, New Jersey, Florida, Idaho, Utah, and Virginia, with average rates between 6.69% and 6.80%. Conversely, the highest rates were reported in Alaska, Rhode Island, West Virginia, Iowa, New Mexico, North Dakota, South Dakota, and Maine, with averages between 6.90% and 7.05%.
Mortgage rates are subject to variations by state due to the presence of different lenders across regions, state-level credit score and average loan size variations, and individual regulatory frameworks. Lenders' specific risk management strategies also influence the rates on offer.
Given the variation in rates between lenders, it is advisable for borrowers to regularly compare their mortgage options. It should be noted that the published rates may not directly correspond with the teaser rates advertised online, as these often represent the most attractive rates based on conditions such as prepayment of points or high credit scores. The rate you secure will depend on various factors such as your income and credit score.
The average rate for 30-year new purchase mortgages fell by 8 basis points over three days, reducing the average to 6.83%, the lowest since April 4. March 2025 saw the rates drop to an average of 6.50%, the lowest for that year, and September saw a two-year low at 5.89%.
Mortgage rates are influenced by a multitude of macroeconomic and industry-based factors, leading to complex calculations. Attempting to attribute any change in rates to a single factor is often challenging, with simultaneous fluctuations being common.
The Federal Reserve's bond-purchasing policy in response to the economic pressures of the pandemic kept the mortgage market relatively low for much of 2021. However, in November 2021, the Fed started reducing its bond purchases, reaching net zero by March 2022. This reduction, combined with raising the federal funds rate to combat heavy inflation, triggered an upward shot in mortgage rates.
The Fed maintained the federal funds rate at its peak for nearly 14 months starting in July 2023, before announcing its first cut of 0.50 percentage points in September, followed by quarter-pointi reductions in November and December. However, rates are expected to remain steady for the coming months.
The national and state averages mentioned above were sourced from the Zillow Mortgage API, considering an 80% loan-to-value ratio and credit scores between 680-739. These rates can be expected by borrowers when receiving quotes, which may differ from advertised teaser rates.© Zillow, Inc., 2025.