New data has shown broad variations in the 30-year new purchase mortgage rates across US states. New York, California, Florida, and Texas currently bear the lowest rates. Collectively these states house approximately one third of the total US population. Massachusetts, Oregon and Pennsylvania follow, with these seven states collectively averaging between 6.71% to 6.88% rates.
On the flipside, the highest rates were found in Alaska, West Virginia, Washington, D.C., South Dakota, Illinois, Maryland, North Dakota, and Wyoming, with a range between 6.97% and 7.06%. These variations in rates are primarily driven by the fact that different lenders operate within different states, with differing risk management strategies and regulatory environments, alongside variations in factors such as average loan size and credit scores.
As a borrower, it’s advisable to not just compare rates within your state, but also with other states and lenders, as rates can be influenced by several factors such as credit score and income, among others.
Mortgage rates on Wednesday averaged nationally at 6.91%, marking a drop from mid-April’s average of 7.14%, which was the highest since May 2024, but also a notable increase from March’s low of 6.50% and a significant rebound from the prior two-year low of 5.89% in September.
It's worth noting that rates are never static but change continually due to complex factors. Diverse macroeconomic and industry elements contribute to their fluctuation. In 2021, the market remained relatively low due to the Federal Reserve's bond-buying policy, aimed at easing the pandemic’s economic strain. However, with the tapering of these bond purchases in November 2021 until they ceased in March 2022, mortgage rates experienced an upward shift. The central bank further announced a rate cut of 0.50 percentage points in September, followed by quarter-point reductions in November and December.
Current rates are calculated via the Zillow Mortgage API with an applicant credit score in the 680–739 range and a loan-to-value (LTV) ratio of 80%. This means the down payment is at least 20%. These rates represent what borrowers could anticipate when receiving quotes from lenders based on their qualifications, and they may vary from advertised teaser rates.