Current Minimum Refinancing Rates Across States - June 17, 2025
Whippin' Through Your Mortgage Options
Get the lowdown on today's hottest mortgage rates! The states with the most affordable 30-year refinance rates this Monday are NY, CA, FL, TX, GA, NC, MD, and MN. These wallet-friendly locals are serving up refi averages between 7.00% and 7.10%.
On the flip side, this Monday's priciest 30-year refinance rates belong to WV, AK, SD, DE, HI, LA, and MS. Homeowners in these areas should prepare for refi averages between 7.17% and 7.22%.
Mortgage refinancing rates ain't consistent across states. Different lenders operate in various regions, and yo-yo rates can be whipped up by state-level changes in credit score, average loan size, and regulations. Lenders also use their risk management strategies to influence the rates they spill.
When shopping for the best mortgage deal, don't be a couch potato! Always compare offers like a pro and study 'em regularly, no matter the flavor of home loan you hanker for.
The Nation's Mortgage Refinance Rate Buffet
Last week, 30-year refinance rates took a nosedive for four days straight but have since climbed back up for a couple of days, settling in at an average of 7.13%. That's better than the 7.32% high peak seen in May but still above March's cheapest 2025 mark of 6.71%. Remember when refi rates sank down to a two-year low of 6.01% last September? Those were the days!
Beware of teaser rates that make a tempting first impression but may end up costing you extra in points or base on a hypothetical borrower with an ultra-high credit score or rolled-up loan size. The rate you bag is dependent on your credit score, income, and other borrower factors.
Get a Grip on Your Dream Mortgage Today - June 18, 2025. Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
Your monthly mortgage payment will be influenced by elements like your home price, down payment, loan term, property taxes, homeowners insurance, and the loan's interest rate (determined largely by your credit score). Plug in your custom details below for a feel of what your monthly mortgage payment could run.
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What Boosts or Drops Mortgage Rates?
Mortgage rates are like a dancing spider web, tangled up in a mix of macroeconomic and industry factors.
- Federal Reserve Policy: The Feds' tweaks to their federal funds rate can significantly sway mortgage rates, especially when the Feds flex their muscles by raising this rate to tackle inflation or economic overheating, leading to higher borrowing costs for banks and thus larger mortgage rates for you and me. On the flipside, rate cuts by the Feds usually result in a decrease in mortgage rates. However, mortgage rates often correlate more closely with long-term bond yields than with short-term Fed rates directly.
- Bond Markets and Treasury Yields: Mortgage rates move in harmony with yields on U.S. Treasury securities, particularly the 10-year Treasury note. Typically, the average 30-year fixed mortgage rate swirls about 2% higher than the 10-year Treasury yield. Changes in Treasury yields instigated by investor demand, inflation expectations, and economic outlook can play a role in shifting mortgage rates.
- Inflation: Increased inflation pushes investors to demand higher yields on bonds to account for decreasing purchasing power, leading to higher mortgage rates. Inflation has been a crucial factor behind recent rate hikes by the Feds and ensuing mortgage rate increases.
- Economic Indicators: Data such as GDP growth, employment figures, and consumer confidence can influence lender sentiment and bond yields, ultimately affecting mortgage rates. A robust economy often promotes increased borrowing, and with it, rising rates due to inflationary pressure.
- Government Policies: Government measures encouraging homeownership, such as tax credits or down payment assistance, can spark mortgage demand, potentially pushing rates up due to increased borrowing.
- Geopolitical and Global Events: Political strife, wars, pandemics, or major elections can lead to market volatility in the stock and bond markets, which can, in turn, cause mortgage rates to gyrate. Such events might cause mortgage rates to climb as investors scurry for safer assets or grapple with shifting economic circumstances.
Key Ingredients in Mortgage Rate Swings
According to experts, the bulk of recent mortgage rate increases can be attributed to the following:
- Federal Reserve policy rate adjustments (around 50%)
- Expansion of term premiums (investors demanding a superior return for longer maturities)
- Prepayment risk (the risk borrowers will refinance when rates drop)
- Shifts in option-adjusted spreads (risk premiums on mortgage-backed securities)
- Lender fees and operational costs
- Inflation itself
Personal Borrower Elements
Individual mortgage rates can also be affected by:
- Credit Score: Better scores secure lower rates due to the lower risk perceived by lenders.
- Loan-to-Value Ratio (LTV): Lower LTV ratios (bigger down payments) typically yield more affordable rates.
- Debt-to-Income Ratio (DTI): Lower DTI ratios (improved financial stability) generally lead to lower rates.
- Loan Amount and Property Type: Larger loans or certain property types may attract higher rates.
- Loan Term and Mortgage Points: Shorter terms and paying points upfront can impact the rates provided.
- Closing Costs: Incorporating closing costs into the loan may slightly raise the mortgage rate.
In essence, mortgage rates are the product of a complex dance between macroeconomic forces, especially Federal Reserve policy, inflation, Treasury yields, and geopolitical factors, joined by lender costs and individual borrower risk profiles. Gaining insight into these connections can help borrowers foresee rate trends and prep for better mortgage terms.
- The regulation of federal funds rate by the Federal Reserve can significantly impact mortgage rates, as increases may lead to higher borrowing costs for banks and subsequently higher mortgage rates for individuals.
- In the realm of personal finance, a higher credit score can lead to lower mortgage rates due to the lower risk perceived by lenders, making it essential for individuals to manage their credit wisely.
- For wealth-management purposes, understanding the factors influencing mortgage rates, such as inflation, bond markets, and federal policies, can empower investors to make informed decisions when considering investing in mortgage-backed securities or other related financial instruments.
