The cheapest 30-year refinance rates were found in states such as New York, California, Florida, Massachusetts, Colorado, North Carolina, Tennessee, Washington, Texas, and Wisconsin, with averages ranging from 6.78% to 6.98%. Conversely, the priciest refinance rates were observed in West Virginia, Oregon, Washington, D.C., Hawaii, Maryland, and Utah, among others, with averages of 7.03% to 7.07%.
These state-specific refinance rates are influenced by variations in credit scores, average loan sizes, regulations, and the regional presence of different lenders. Along with these, the lenders' risk management strategies also contribute to the rates they offer.
Given this heterogeneity in rates, borrowers are advised to frequently compare rates across lenders to secure the best mortgage option. The 30-year refinance mortgage rates have exhibited fluctuation over the past year, dropping by 9 basis points within two days and averaging 7.00% recently, the lowest since April 4.
However, these publicized rates don’t directly compare with the teaser rates you find advertised online. Teaser rates often involve upfront points payments or may be based on an idealized borrower profile with superior credit scores or smaller-than-typical loans. The rate a borrower ultimately secures hinges on individual factors, including their credit standing, income, among others.
Mortgage rates are determined by a complex mix of macroeconomic and industry factors, making it challenging to attribute any change to one particular factor. Last year, the Federal Reserve's bond-buying policy, in response to pandemic-induced economic pressures, largely kept the mortgage market low. However, with the Fed initiating a tapering off its bond purchases since November 2021, mortgage rates have experienced an upward swing, influenced indirectly by the fed funds rate.
After maintaining peak levels for 14 months, the Fed recently announced a rate cut of 0.50 percentage points followed by quarter-point reductions. However, subsequent rate cuts may not occur for several months, resulting in potentially multiple rate-hold announcements in 2025.
Nonetheless, gather your rates quotes based on your qualifications, which may fluctuate from advertised teaser rates.