As of recent measurements, the states to offer the most affordable 30-year refinance rates were California, New York, North Carolina, Minnesota, Washington, Florida, Oregon, Texas, and Nebraska. These states recorded average refinance rates between 6.82% and 6.97%. In contrast, the states with the most costly rates included West Virginia, Missouri, Ohio, Alaska, Hawaii, and New Mexico, along with several others tied at average rates between 7.04% and 7.09%.
Each state's refinance rates can vary significantly due to the differing lenders operating across regions, state-level credit score variations, average loan size, and regulations. Lenders also have unique risk management strategies that shape the rates they offer. This diversity underlines why it is beneficial to compare rates across multiple lenders, regardless of the type of home loan required.
Mortgage refinance rates have seen a significant decline of 10 basis points over four days, reaching a Monday average of 7.00%. However, refinance rates were more favorable back in March when they dipped to a 2025 low of 6.71%. These averages are seldom reflected in the enticing teaser rates advertised online, which usually involve upfront points payment, being based on a hypothetical borrower with an exceptional credit score or a smaller-than-average loan. The rate a potential borrower secures will rely on various personal factors, potentially deviating from these averages.
The fluctuation in mortgage rates is a product of macroeconomic factors and industry dynamics, often changing simultaneously, making it complex to attribute rate changes to a specific cause. The Federal Reserve's bond-buying policy to counteract the pandemic's economic impact significantly influenced mortgage rates. However, the Fed started reducing its bond purchases in November 2021, and by 2023, it had aggressively raised the federal funds rate to fight high inflation. Mortgage rates mirrored these dramatic changes, marking a surge.
However, from September of 2023, the Fed announced a series of rate cuts, and by 2025, rates have remained steady. No further cuts are expected until at least September, but additional rate holds are expected in the following four meetings.
The national and state averages mentioned have been provided via the Zillow Mortgage API and are attained from a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. Thus, these rates depict what borrowers should expect when receiving quotes from lenders tailored to their specific circumstances, which might differ from promotional advertised rates.