Lowest Refinance Rates Found in These Three States - Details from May 2, 2025
Hey there! Let's discuss the latest on mortgage refinance rates across states. As of today, New York, Texas, and Pennsylvania boast the cheapest 30-year mortgage refinance rates, registering averages between 6.77% and 7.00%. On the flip side, the states with the highest rates are West Virginia, Maryland, Washington D.C., Alaska, South Carolina, Kentucky, Missouri, North Dakota, Oregon, and South Dakota, with averages ranging from 7.07% to 7.15%.
It's essential to remember that mortgage refinance rates vary across lenders due to factors like regional operations, credit scores, average loan sizes, regulations, and varying risk management strategies. That's why it's always wise to shop around and compare rates to secure your best mortgage option.
In April, the 30-year refinance average wavered after a volatile month, landing at 7.03%, having plummeted to a two-year low of 6.01% back in September. It's always a good idea to calculate your monthly mortgage payments using our mortgage calculator to understand what you could be paying each month based on your credit score, income, and loan details.
The reasons behind changes in mortgage rates are multifaceted. National economic and policy factors, such as Federal Reserve policy and inflation, heavily influence mortgage rates. In addition, the bond market, employment, and economic indicators also play a role.
While regional differences stem from lender practices, borrower credit profiles, and state-specific factors like average loan size and regulations, individual borrower characteristics further refine the rates offered in each state.
Now, let's dive a little deeper into the factors affecting mortgage rates. The Federal Reserve’s adjustments to the federal funds rate impact borrowing costs for banks, which indirectly affect mortgage rates. Lenders' responses to inflation, bond market activity, supply and demand, and economic indicators also influence rates.
State-level factors, such as variations in lender practices, average credit scores, typical loan amounts, state regulations, and local lending practices, cause state-specific mortgage rates.
Lastly, individual borrower characteristics like creditworthiness, loan type, and terms impact the rate offered to specific applicants.
With all these factors in play, mortgage rates can vary significantly across states and over time. So, whether you're planning to refinance your mortgage or looking to buy a new home, it's essential to keep an eye on current mortgage rates.
Remember, the rates we provide may not directly compare to teaser rates advertised online, as these rates are often cherry-picked and based on factors like ultra-high credit scores, smaller loans, or points paid upfront. Always shop around and compare rates to secure the best deal.
Now that you've got a better understanding of mortgage rates, compare today's rates, and use our mortgage calculator to estimate your monthly payments. Happy house hunting!
[1] Federal Reserve's tapering and rate hikes over the past few years[2] Second mortgage rate cut in 2024[3] The impact of the federal funds rate on mortgage rates[4] Inflation slowdown in 2024[5] The effects of supply and demand, job market, and economic growth on mortgage rates
- Regulations imposed by the Federal Reserve, such as tapering and rate hikes over the past few years, can directly impact borrowing costs for banks and subsequently affect mortgage rates.
- In 2024, the Federal Reserve might decide to reduce interest rates for a second time, potentially leading to lower mortgage rates for new borrowers.
- The federal funds rate set by the Federal Reserve plays a substantial role in influencing mortgage rates, as changes in this rate affect borrowing costs for banks.
- The overall economic growth, job market, and supply and demand factors have the power to impact mortgage rates significantly, as these elements shape the bond market and employment trends that lenders consider when setting rates.
- Individual borrower characteristics, like creditworthiness, loan type, and terms, contribute to the rates offered to specific applicants, as lenders evaluate and manage risk according to these factors.
