Current Minimum Mortgage Rates Across States as of June 6, 2025
Hey there! Check out today's mortgage rate rundown, you'll find the cheapest and most expensive states for a 30-year new purchase. These figures are based on averages from June 6, 2025. Let's take a look!
States with the lowest new purchase mortgage rates on Thursday include New York, California, Massachusetts, South Carolina, Florida, New Jersey, New Hampshire, South Dakota, and Washington. These states clocked averages between 6.75% and 6.91%.
Unfortunately, it's not all sunshine and roses, as some states are dealing with astronomical rates. This week, the most expensive states are Alaska, West Virginia, Iowa, Kansas, Mississippi, North Dakota, Maine, Oklahoma, Vermont, and Wyoming. These not-so-lucky areas have mortgage averages ranging from 6.98% to 7.10%.
So, why the huge discrepancy in mortgage rates across states? Well, it's all about various lenders operating in different regions and state-level variations like credit score, average loan size, and regulations that can affect things. And because the rates amongst lenders can differ widely, it's always a good idea to shop around and compare.
Now, you might be thinking those rates seem familiar from the teaser ads you've seen out there online, but they're not quite the same. Teaser rates are the crème de la crème, meant to attract your attention with factors like paying points upfront or hypothetical borrowers with ultra-high credit scores or smaller-than-average loans. The actual rate you'll end up securing will depend heavily on your personal financial situation.
Wondering what's causing these ups and downs in mortgage rates? Well, it's a complex mix of macroeconomic and industry factors, such as the level and direction of the bond market, the Federal Reserve's current monetary policy, and competition between mortgage lenders across loan types. Since all these pieces can move simultaneously, it can be tough to single out any one factor as the primary driver of fluctuations.
Over the past few years, economic factors have largely kept mortgage rates low, with the Federal Reserve's bond-buying policy being a significant player. However, starting in November 2021, the Fed began tapering its bond purchases, causing mortgage rates to climb. Since then, the Fed has aggressively raised the federal funds rate to combat inflation. Despite this, they did announce a rate cut in September 2023, with more potential reductions on the horizon.
But don't worry, the Fed held rates steady at their latest meeting, and we could see multiple rate-hold announcements in 2025.
Our numbers come straight from the Zillow Mortgage API, assuming an LTV ratio of 80% and an applicant credit score in the 680-739 range. This provides a realistic idea of what rates you might encounter when dealing with lenders based on your qualifications.
Looking for more information on mortgage rates? Zillow has got your back! As an equal housing lender licensed in all 50 states, they're here to help navigate the ins and outs of the housing market. Check them out for more info today.
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