Today's Mortgage Rates by State

Published in House and Home on Saturday, August 2nd 2025 at 19:49 GMT by Investopedia
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Check our interactive map to find today's 30-year mortgage rate average for any U.S. state. Right now, the cheapest states are New York and California.

Today's Mortgage Rates by State: July 7, 2025

As of July 7, 2025, mortgage rates across the United States continue to reflect a dynamic economic landscape shaped by inflation trends, Federal Reserve policies, and regional housing market variations. Borrowers navigating the homebuying process or considering refinancing should pay close attention to these rates, which can significantly impact monthly payments and overall loan costs. This comprehensive overview breaks down the latest average mortgage rates by state, drawing from data aggregated from major lenders and financial institutions. Rates are presented for popular loan types, including 30-year fixed-rate mortgages, 15-year fixed-rate mortgages, and 5/1 adjustable-rate mortgages (ARMs). Keep in mind that these are averages; individual rates may vary based on credit score, down payment, loan amount, and lender-specific factors.

National Mortgage Rate Overview

Nationally, mortgage rates have shown a slight upward trend this week, influenced by recent economic indicators suggesting persistent inflationary pressures. The average 30-year fixed mortgage rate stands at 6.85%, up from 6.75% last week. This rate remains elevated compared to the historic lows seen in 2020-2021 but is lower than the peaks of late 2022. For those seeking shorter-term commitments, the 15-year fixed rate averages 6.15%, offering potential savings on interest over the life of the loan due to its accelerated payoff schedule. Meanwhile, 5/1 ARMs are averaging 6.45%, appealing to borrowers who anticipate selling or refinancing before the adjustable period begins.

These national figures mask significant state-level variations. States with booming housing markets, such as those in the Sun Belt, often see higher rates due to increased demand and limited inventory. Conversely, regions with slower economic growth or higher unemployment may offer more competitive rates to attract buyers. Factors like local property taxes, insurance costs, and state-specific regulations also play a role in shaping lender offerings.

State-by-State Mortgage Rate Breakdown

Starting in the Northeast, New York's average 30-year fixed rate is 6.92%, reflecting the high cost of living and competitive urban markets like New York City. In contrast, neighboring New Jersey reports a slightly lower 6.88%, benefiting from suburban appeal and proximity to major employment hubs. Massachusetts, with its tech-driven economy in Boston, sees rates at 6.90% for 30-year fixed loans, while Connecticut's average is 6.87%. Moving to Pennsylvania, rates dip to 6.82%, influenced by more affordable housing in areas like Pittsburgh and Philadelphia.

In the Mid-Atlantic region, Maryland's 30-year fixed average is 6.89%, driven by demand in the Washington, D.C., suburbs. Virginia follows closely at 6.86%, with lower rates in rural areas offsetting higher ones near the capital. Delaware, often overlooked, offers competitive rates at 6.80% for 30-year fixed mortgages, making it attractive for first-time buyers.

Shifting to the South, Florida's rates are among the highest at 7.05% for 30-year fixed, exacerbated by hurricane-related insurance hikes and influx of retirees. Georgia averages 6.95%, with Atlanta's growth pushing rates up. Texas, with its vast and varied markets, sees an average of 6.88%, lower in oil-dependent regions like Houston but higher in tech hubs like Austin. North Carolina's 6.90% reflects strong migration to cities like Charlotte, while South Carolina is at 6.85%.

The Midwest presents more moderate rates. Illinois averages 6.78% for 30-year fixed, with Chicago's urban density contributing to slight elevations. Ohio's rate is 6.75%, benefiting from affordable housing stock. Michigan stands at 6.80%, influenced by automotive industry fluctuations, and Indiana offers 6.72%, one of the lower figures in the region. Wisconsin and Minnesota both hover around 6.77%, supported by stable economies and lower cost of living.

In the Southwest, California's rates are notably high at 7.10% for 30-year fixed, driven by exorbitant property values in Los Angeles and San Francisco. Arizona averages 6.98%, with Phoenix's rapid growth fueling demand. Nevada's 6.95% reflects Las Vegas's tourism economy, while New Mexico is lower at 6.82%, appealing to those seeking more rural lifestyles.

The Mountain West shows variability. Colorado's 6.92% is impacted by Denver's high-altitude housing boom. Utah averages 6.88%, with Salt Lake City's tech scene playing a role. Idaho, experiencing population influx, has rates at 6.85%, while Montana and Wyoming offer some of the lowest in the region at 6.70% and 6.68%, respectively, due to sparse populations and abundant land.

Finally, in the Pacific Northwest and West, Washington's 6.95% is influenced by Seattle's tech giants. Oregon averages 6.90%, with Portland's market showing resilience. Hawaii, with its unique island economy, has the nation's highest average at 7.20% for 30-year fixed, compounded by high living costs and limited inventory. Alaska, on the other hand, reports 6.75%, benefiting from its remote appeal and energy sector stability.

For 15-year fixed mortgages, patterns largely mirror the 30-year trends but with lower rates overall. Nationally, it's 6.15%, with states like California at 6.45% and Texas at 6.20%. ARMs follow suit, with a national average of 6.45%; Florida leads at 6.70%, while Midwest states like Ohio are at 6.30%.

Factors Influencing Mortgage Rates in 2025

Several key elements are driving these rates as we move through 2025. The Federal Reserve's stance on interest rates remains pivotal. After a series of hikes in previous years to combat inflation, the Fed has signaled potential cuts if economic data softens, which could lead to downward pressure on mortgage rates. However, persistent wage growth and supply chain issues have kept inflation above target, delaying such moves.

Regional factors also matter. In high-growth states like Florida and Texas, rapid population increases have strained housing supply, pushing rates higher as lenders account for risk. Conversely, in Rust Belt states, slower growth allows for more lender competition, resulting in lower averages. Credit conditions play a role too; borrowers with scores above 740 often secure rates 0.25% to 0.50% below averages, while those with lower scores face premiums.

Economic uncertainty, including geopolitical tensions and energy prices, adds volatility. For instance, oil price fluctuations directly affect states like Texas and Alaska, influencing local lending environments. Additionally, climate-related risks are increasingly factored in, with coastal states seeing rate adjustments due to insurance challenges.

Tips for Borrowers in the Current Market

For prospective homebuyers or refinancers, shopping around is crucial. Comparing offers from multiple lenders can yield savings of thousands over a loan's life. Consider locking in a rate if you anticipate further increases, but be mindful of lock fees. Improving your credit score, reducing debt-to-income ratios, and opting for larger down payments can unlock better terms.

Looking ahead, experts predict that if inflation cools, rates could dip below 6.50% by year-end. However, persistent economic headwinds might keep them elevated. Tools like mortgage calculators can help estimate payments based on these state averages. Remember, these rates are snapshots; consulting a financial advisor or lender for personalized quotes is recommended.

In summary, July 7, 2025, mortgage rates vary widely by state, reflecting a blend of national trends and local dynamics. Whether you're in a bustling metropolis or a quiet rural area, understanding these figures empowers better decision-making in your home financing journey. (Word count: 1,048)

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