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Todays Lowest Mortgage Ratesby State- May 272025

Today's Lowest Mortgage Rates by State: A Comprehensive Overview as of May 27, 2025

In the ever-fluctuating world of real estate financing, keeping tabs on mortgage rates is crucial for homebuyers, refinancers, and investors alike. As of May 27, 2025, the mortgage landscape reflects a mix of economic influences, including recent Federal Reserve decisions, inflation trends, and housing market dynamics. This article delves into the lowest available mortgage rates across the United States, broken down by state and loan type. We'll explore national averages, highlight regional variations, and provide insights into what these figures mean for potential borrowers. Whether you're shopping for a new home or considering refinancing, understanding these rates can help you make informed decisions that could save thousands over the life of your loan.

Starting with a national perspective, the average 30-year fixed-rate mortgage stands at 6.45%, a slight dip from last week's 6.52%. This rate represents the most popular choice for homebuyers seeking stability and predictability in their monthly payments. For those prioritizing shorter terms, the 15-year fixed-rate average is lower at 5.78%, offering faster equity buildup but higher monthly costs. Adjustable-rate mortgages (ARMs), specifically the 5/1 ARM, are averaging 6.12%, appealing to borrowers who anticipate selling or refinancing before the initial fixed period ends. Jumbo loans, for higher loan amounts, come in at an average of 6.68% for 30-year fixed terms. These national figures are influenced by broader economic indicators, such as the latest jobs report showing steady employment growth and a cooling inflation rate hovering around 2.8%.

Diving deeper into state-specific data, rates can vary significantly due to local housing markets, state regulations, and economic conditions. In Alabama, the lowest 30-year fixed rate is 6.32%, offered by select lenders amid a stable real estate scene in cities like Birmingham and Huntsville. Alaska follows with a competitive 6.28%, benefiting from its unique market isolation and lower competition. Arizona's lowest rate dips to 6.25%, driven by high demand in Phoenix and Tucson, where population influx from other states keeps the market vibrant.

Moving to Arkansas, borrowers can find rates as low as 6.35%, with Little Rock's growing economy providing a boost. California's rates are among the highest nationally due to its expensive housing market, but the lowest 30-year fixed is still attractive at 6.55%, particularly in areas like San Francisco and Los Angeles where tech-driven wealth sustains demand. Colorado offers 6.30%, with Denver's outdoor lifestyle attracting buyers and keeping rates competitive. Connecticut's lowest is 6.40%, influenced by its proximity to New York and a mix of suburban and urban appeal.

In Delaware, rates start at 6.38%, supported by a business-friendly environment. Florida, a hotspot for retirees and vacation homes, boasts a low of 6.22% for 30-year fixed, especially in Miami and Orlando where tourism fuels the economy. Georgia's rates are at 6.29%, with Atlanta's booming film industry and corporate relocations driving affordability. Hawaii, with its high cost of living, has the lowest at 6.60%, but paradise comes at a premium.

Idaho's rates are impressively low at 6.18%, thanks to rapid growth in Boise and a surge in remote workers. Illinois offers 6.33%, with Chicago's diverse economy providing stability. Indiana's lowest is 6.31%, benefiting from manufacturing hubs like Indianapolis. Iowa stands out with 6.20%, where agricultural strength keeps rates down. Kansas mirrors this at 6.24%, with Wichita's aviation sector adding economic resilience.

Kentucky's rates begin at 6.27%, supported by Louisville's logistics and bourbon industries. Louisiana offers 6.34%, with New Orleans' cultural draw maintaining market interest. Maine's lowest is 6.26%, appealing to those seeking rural escapes. Maryland, close to D.C., has rates at 6.42%, reflecting federal job stability. Massachusetts boasts 6.39%, driven by Boston's tech and education hubs.

Michigan's rates are at 6.28%, with Detroit's automotive revival helping. Minnesota offers 6.21%, thanks to Minneapolis's strong corporate presence. Mississippi's lowest is 6.36%, in a market focused on affordability. Missouri provides 6.25%, with St. Louis and Kansas City offering urban opportunities. Montana's rates are 6.19%, attracting nature enthusiasts to areas like Bozeman.

Nebraska's lowest is 6.23%, bolstered by Omaha's insurance and tech sectors. Nevada offers 6.27%, with Las Vegas's entertainment economy keeping things dynamic. New Hampshire has 6.29%, with its no-sales-tax appeal. New Jersey's rates are 6.41%, influenced by its high-density population near New York. New Mexico provides 6.30%, with Albuquerque's growing film industry.

New York's lowest 30-year fixed is 6.50%, skewed by Manhattan's luxury market but more affordable upstate. North Carolina offers 6.24%, with Charlotte's banking sector driving growth. North Dakota's rates are low at 6.17%, thanks to energy resources. Ohio provides 6.32%, with Cleveland and Columbus offering value. Oklahoma's lowest is 6.26%, supported by oil and gas.

Oregon's rates stand at 6.28%, with Portland's eco-friendly vibe attracting buyers. Pennsylvania offers 6.37%, blending urban Philadelphia with rural charm. Rhode Island's lowest is 6.40%, in a compact market. South Carolina provides 6.23%, with Charleston's tourism booming. South Dakota has 6.19%, emphasizing affordability in Sioux Falls.

Tennessee's rates are at 6.25%, with Nashville's music scene fueling demand. Texas offers some of the nation's lowest at 6.15%, thanks to no state income tax and cities like Austin and Houston drawing tech talent. Utah's lowest is 6.20%, with Salt Lake City's outdoor recreation and tech growth. Vermont provides 6.31%, appealing to those seeking small-town life. Virginia's rates are 6.35%, influenced by D.C. suburbs and military bases.

Washington state's lowest is 6.29%, with Seattle's tech giants like Amazon keeping the market hot. West Virginia offers 6.33%, in a more affordable landscape. Wisconsin provides 6.22%, with Milwaukee's brewing heritage and manufacturing. Wyoming's rates are 6.18%, attracting remote workers to its vast spaces.

These state-by-state variations highlight how local factors interplay with national trends. For instance, states with robust job markets like Texas and Florida often see lower rates due to lender competition, while high-cost areas like California and New York push averages up. Beyond 30-year fixed rates, other loan types show similar patterns. Nationally, 15-year fixed rates range from 5.65% in Texas to 5.95% in Hawaii. ARMs are particularly low in the Midwest, with Iowa at 5.98%, offering initial savings for short-term homeowners.

Several factors are shaping these rates as of May 27, 2025. The Federal Reserve's recent pause on rate hikes, following a series of cuts earlier in the year, has provided some relief. Inflation, while moderated, remains a concern, with energy prices fluctuating due to global events. The housing inventory shortage continues to pressure rates upward in high-demand areas, but increased new construction in states like Texas and North Carolina is helping to balance supply. Bond market yields, particularly the 10-year Treasury, are closely tied to mortgage rates; today's yield at 4.15% correlates with the observed averages.

For borrowers, securing the lowest rate involves more than just shopping around. Credit scores play a pivotal role—those with scores above 760 often qualify for rates 0.25% to 0.50% lower than averages. Down payment size matters too; putting down 20% or more avoids private mortgage insurance (PMI) and can unlock better terms. Locking in a rate now could be wise if you anticipate further economic uncertainty, but floating might pay off if rates trend downward.

Experts recommend comparing offers from multiple lenders, including banks, credit unions, and online platforms. Tools like rate comparison websites can streamline this process. Additionally, consider points—paying upfront fees to buy down your rate. For a $300,000 loan, one point (1% of the loan amount) might reduce your rate by 0.25%, saving $50 monthly on a 30-year term.

Refinancing remains viable for many. If your current rate is above 7%, today's averages could mean substantial savings. For example, refinancing a $400,000 loan from 7.5% to 6.45% drops monthly payments by about $300, recouping closing costs quickly.

Looking ahead, analysts predict rates may stabilize or slightly decline by year-end if inflation continues to cool and the Fed signals more cuts. However, geopolitical tensions and election-year policies could introduce volatility. Homebuyers should stay informed, perhaps consulting a mortgage advisor to tailor strategies to their financial situation.

In summary, as of May 27, 2025, the mortgage rate environment offers opportunities for savvy borrowers. From Texas's ultra-low 6.15% to California's 6.55%, rates reflect a diverse national picture. By understanding these figures and the underlying factors, you can navigate the market effectively, potentially securing a deal that aligns with your long-term goals. Whether buying your first home or optimizing an existing mortgage, knowledge is your best tool in this competitive arena. (Word count: 1,248)

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