Current Mortgage Interest Rates Across States – May 1st, 2025

Current Mortgage Interest Rates Across States – May 1st, 2025

In a nutshell, the states with the lowest 30-year new purchase mortgage rates on a Wednesday were New York, Texas, Florida, Pennsylvania, Washington, Arizona, New Jersey, and Utah. These states reported averages ranging from 6.68% to 6.88%. Conversely, Alaska, West Virginia, Maryland, Vermont, Indiana, Maine, Nevada, North Dakota, and South Dakota took the cake as the states with the highest Wednesday mortgage rates. Their averages fell between 6.96% and 7.02%.

The mortgage rate scene varies greatly depending on the state, as different lenders operate in diverse regions, and rates could be swayed by state-level credit scores, loan sizes, and regulations. Don't forget that each lender comes with their risk management policies, and these influence the rates they propose.

When shopping for the best mortgage deal, it's always smart to compare rates and options from multiple lenders, no matter the loan type you're eyeing. Just remember, the rates published here don't mirror the teaser rates you see online, which are usually more attractive and based on ideal conditions like ultra-high credit scores or small-sized loans[1].

On May 1, 2025, 30-year new purchase mortgages, having slipped 20 basis points in four days, climbed 3 basis points. After a surge of 44 basis points in a week earlier this month, these rates shot up to 6.90% - the most expensive since May 2024. However, last month, they dropped to 6.50%, marking the cheapest average of 2025. And in September, they tumbled to a two-year low of 5.89%.

Use our Mortgage Calculator to compare current mortgage rates and calculate mortgage payments based on home price, down payment, loan term, property taxes, homeowners insurance, and interest rate on the loan. Your monthly mortgage payment would depend on these factors, with the interest rate being particularly affected by your credit score[1].

Factors Affecting Mortgage Rates:

1. Economic Indicators: Many factors encompass the economic landscape, such as:
2. Inflation: Rising inflation often pushes interest rates up, as lenders require higher returns to offset reduced purchasing power[2]. The Federal Reserve frequently raises short-term rates to curb inflation, indirectly affecting long-term borrowing costs[1].
3. Economic growth: Rapid GDP growth and low unemployment boost loan demand, potentially driving up rates, while an economic downturn may lead to rate drops[2].
4. Federal Reserve Actions: Although the federal funds rate directly controls short-term borrowing, it indirectly impacts long-term rates like mortgages. For example, the Fed's 5.25-point interest rate increase during 2022-2023 created upward pressure on all borrowing costs through monetary tightening[2][4]. Alternatively, rate cuts may sporadically see mortgage rates rise temporarily due to shifting market expectations[3][5].
5. Bond Market Dynamics:
6. 10-Year Treasury yields: these serve as a major interest rate benchmark, moving in unison with mortgage rates[3][5].
7. Mortgage-backed securities (MBS) demand: When investors flock to MBS as safe assets, rates tend to fall. Conversely, reduced demand forces lenders to raise rates to attract buyers[1][3].
8. Housing Market Factors:
9. Property type: Primary residences secure preferable interest rates compared to vacation homes or investment properties[1].
10. Loan competition: Intense competition and loan product diversity among lenders lead to rate adjustments, particularly during high-demand periods like spring homebuying seasons[2][5].
11. Borrower-Specific Elements:
12. Credit score and debt-to-income ratio: Higher-risk borrowers generally face elevated interest rates[1][5].
13. Down payment size: Generally, larger down payments score better terms[1].

[1] Zillow, Inc. (2025). Retrieved from https://www.zillow.com/mortgage-rates/[2] U.S. Federal Reserve (2022); Federal Open Market Committee (2022). Retrieved from https://www.federalreserve.gov/[3] U.S. Department of the Treasury (2025). Retrieved from https://www.treasury.gov/[4] Federal Reserve Economic Data (FRED) (2025). Retrieved from https://fred.stlouisfed.org/[5] Investopedia (2025). Mortgage-Backed Securities (MBS). Retrieved from https://www.investopedia.com/terms/m/mbs.asp

1. The federal funds rate, although it directly controls short-term borrowing, indirectly impacts long-term rates such as mortgages and could be influenced by regulatory actions from the Federal Reserve.
2. When shopping for a mortgage loan, it is essential to compare rates and options from multiple lenders to account for varying risk management policies and practices that might affect the proposed rates.
3. Mortgage rates could be influenced by economic indicators like inflation and economic growth, with faster growth and lower unemployment potentially increasing rates, while downturns may lead to rate drops.
4. In personal-finance matters, a good credit score and a low debt-to-income ratio play crucial roles in attaining better terms for mortgage loans.
5. Additionally, the 10-Year Treasury yields and demand for mortgage-backed securities (MBS) in the bond market significantly impact mortgage rates, with high demand for MBS usually resulting in lower mortgage rates.

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