The lower end of the 30-year new purchase mortgage rates recently were in New York, Colorado, California, Connecticut, Washington, D.C., Massachusetts, and Washington, showing averages from 6.73% to 6.80%. Conversely, the states with the highest averages were West Virginia, Alaska, North Dakota, Mississippi, Wyoming, and Rhode Island, with rates between 6.95% and 7.01%.
There are several reasons why mortgage rates differ by state, including variances in credit score averages, loan sizes, regulations, and differing risk management strategies by lenders operating in different regions.
It’s crucial to note that the rates seen online or advertised elsewhere may not directly compare to the rates we provide here. Actual rates depend on individual factors like credit score, income, among others. The rates of 30-year new purchase mortgages have been dropping daily, completely offsetting the surge we witnessed last week. The current average is down to 6.87% from the peak of 7.15% that was seen in mid-May.
Much of this flux can be attributed to a blend of macroeconomic and industry factors, making it challenging to attribute any change to a single factor. However, the Federal Reserve’s response to the economic pressures of the pandemic, in the form of bond purchases, significantly influenced the low mortgage market seen in most of 2021.
Despite the tapering off of these purchases and aggressive inflation fighting measures, the Fed has shown signs of rate cuts, with reductions in September, November, and December. While another rate cut may not happen for several months, the mortgage rates will continue to be a topic of discussion in 2025.
These rates are provided via Zillow Mortgage API, calculated for applicants with credit scores between 680-739 and are assuming an 80% loan-to-value ratio. These represent what borrowers will likely receive from lenders based on their qualifications, potentially differing from advertised rates. © Zillow, Inc., 2025.