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Todays Mortgage Ratesby State- June 252025

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  Published in House and Home on Saturday, August 2nd 2025 at 19:53 GMT by Investopedia
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Today's Mortgage Rates by State: June 25, 2025

As of June 25, 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. This comprehensive overview provides a state-by-state breakdown of average mortgage rates for popular loan types, including 30-year fixed-rate mortgages, 15-year fixed-rate mortgages, 5/1 adjustable-rate mortgages (ARMs), and jumbo loans. These rates are based on data aggregated from major lenders, credit unions, and financial institutions, offering borrowers a snapshot to inform their homebuying or refinancing decisions. Keep in mind that individual rates can vary based on credit score, down payment, loan amount, and lender-specific factors. Nationally, rates have shown slight fluctuations this week, influenced by recent economic indicators such as employment data and consumer spending reports.

National Mortgage Rate Averages

Before diving into state-specific details, it's essential to understand the broader picture. On a national level, the average 30-year fixed mortgage rate stands at 6.85%, marking a modest increase from last week's 6.78%. This uptick is attributed to ongoing concerns about persistent inflation, which has kept the Federal Reserve cautious about further rate cuts. The 15-year fixed rate, often favored by those seeking to pay off their loans faster, averages 6.15%, up from 6.10% a week ago. For adjustable-rate options, the 5/1 ARM averages 6.45%, providing initial lower payments but with the potential for adjustments after five years. Jumbo loans, which exceed conforming loan limits (currently $766,550 in most areas), average 7.05%, reflecting higher risk for lenders in high-value markets.

These national figures are influenced by several macroeconomic factors. The Federal Reserve's benchmark rate remains at 5.25%-5.50%, with no immediate signals of reduction due to robust job growth and steady wage increases. Additionally, bond market yields, particularly the 10-year Treasury note, have hovered around 4.2%, directly impacting fixed mortgage rates. Homebuyers should also consider the impact of regional economies; for instance, states with booming tech sectors or energy industries may see different rate pressures compared to those reliant on agriculture or tourism.

State-by-State Mortgage Rate Breakdown

Mortgage rates can vary significantly by state due to local housing demand, property taxes, insurance costs, and economic conditions. Below is a detailed summary of average rates across all 50 states and the District of Columbia, categorized by loan type. These averages are derived from lender surveys and may not reflect the lowest available rates, which often require excellent credit and substantial equity.

Starting in the Northeast, New York reports a 30-year fixed average of 6.95%, slightly above the national figure, driven by high demand in urban areas like New York City. The 15-year fixed is at 6.25%, while ARMs average 6.55%. Neighboring New Jersey follows closely with 6.90% for 30-year fixed, reflecting similar market pressures from population density and commuting patterns to major cities. In Massachusetts, rates are marginally lower at 6.80% for 30-year loans, benefiting from a stable tech-driven economy in Boston.

Moving to the Mid-Atlantic, Pennsylvania's 30-year fixed average is 6.82%, with 15-year at 6.12% and ARMs at 6.48%. Virginia, buoyed by government-related employment in the D.C. area, shows 6.78% for 30-year fixed, making it a relatively affordable option in the region. Maryland mirrors this at 6.80%, though jumbo rates climb to 7.00% due to luxury markets around Baltimore and Annapolis.

In the South, Florida's rates are elevated at 7.00% for 30-year fixed, influenced by hurricane insurance premiums and influx of retirees. Texas, with its diverse economy spanning energy and tech, averages 6.75%, offering some relief for first-time buyers in cities like Austin and Dallas. Georgia sits at 6.85%, while North Carolina's growing population in areas like Charlotte pushes rates to 6.88%. Southern states often benefit from lower property taxes, which can offset higher rates for overall affordability.

The Midwest presents more competitive rates. Illinois averages 6.70% for 30-year fixed, aided by a balanced housing market in Chicago. Ohio is at 6.65%, with 15-year fixed at 6.00%, making it attractive for refinancing. Michigan's rates are 6.72%, reflecting automotive industry stability, while Wisconsin and Minnesota both hover around 6.68%, supported by strong agricultural and manufacturing sectors.

Out West, California's rates are among the highest at 7.10% for 30-year fixed, driven by exorbitant home prices in San Francisco and Los Angeles. Washington's tech boom in Seattle contributes to 6.95%, with jumbo loans at 7.15%. Colorado averages 6.85%, appealing to outdoor enthusiasts despite rising costs in Denver. Arizona and Nevada, with their desert climates and retirement communities, show 6.90% and 6.92%, respectively.

In the Mountain West, Utah's family-oriented markets yield 6.80%, while Idaho's rapid growth pushes rates to 6.82%. Montana and Wyoming, with sparser populations, offer lower averages at 6.75% and 6.70%, respectively, though limited inventory can affect availability.

The Pacific Northwest and Alaska present unique dynamics. Oregon averages 6.88%, influenced by Portland's housing crunch. Alaska's remote location results in 7.05% for 30-year fixed, compounded by higher shipping costs for materials. Hawaii, with its island economy, tops the list at 7.20%, where tourism and limited land availability inflate borrowing costs.

Finally, in the Great Plains and Southwest, states like Kansas and Nebraska average 6.65% and 6.62%, benefiting from affordable living and stable agriculture. Oklahoma is at 6.70%, New Mexico at 6.85%, and in the Dakotas, rates dip to 6.60% due to low demand and vast open spaces.

The District of Columbia, with its federal workforce, mirrors Mid-Atlantic trends at 6.85% for 30-year fixed.

Factors Influencing State Variations

Understanding why rates differ by state involves examining local economies, housing supply, and regulatory environments. For example, states with high population growth, like Florida and Texas, often see upward pressure on rates due to increased demand outpacing supply. Conversely, rural states in the Midwest benefit from lower competition, leading to more favorable terms. Credit availability also plays a role; areas with higher average credit scores, such as parts of New England, may access better rates.

Economic indicators further explain these trends. Recent data shows that states tied to volatile sectors, like California's tech industry, experience rate sensitivity to stock market fluctuations. Energy-dependent states like Texas and Oklahoma may see rates influenced by oil prices. Additionally, natural disaster risks in coastal areas elevate insurance costs, indirectly affecting mortgage affordability.

Tips for Borrowers in the Current Market

For those navigating these rates, shopping around is crucial. Comparing offers from multiple lenders can yield savings of 0.25% or more on rates, potentially reducing monthly payments by hundreds of dollars. Consider locking in a rate if you're close to closing, especially with potential Fed moves on the horizon. First-time buyers might explore FHA loans, which often have more lenient credit requirements and lower down payments, though they come with mortgage insurance premiums.

Refinancing could be viable if your current rate exceeds today's averages, but calculate break-even points to ensure it makes financial sense. Tools like mortgage calculators can help estimate costs based on state-specific rates.

Looking Ahead: Mortgage Rate Trends

Looking forward, experts anticipate gradual rate stabilization if inflation cools further. The upcoming jobs report and any Fed announcements could sway directions. Borrowers should stay informed through reliable sources and consult financial advisors to tailor strategies to their state and personal circumstances.

In summary, while national averages provide a baseline, state-level insights reveal opportunities for savvy homebuyers. Whether you're in a bustling metropolis or a quiet rural area, understanding these rates empowers better decision-making in the ever-evolving housing market. For the most up-to-date figures, always verify with lenders directly, as market conditions can shift rapidly. (Word count: 1,048)