Lowest Today Mortgage Rates Across the States - 3rd June, 2025
Loaning Times:
Currently, the cheapest states for a 30-year new mortgage purchase, as of this week, are New York, California, and Hawaii, with Tennessee close behind. These states sport average rates of 6.86% - 6.97%, making them the most wallet-friendly options.
Now, let's flip to the dearer side of the spectrum. Alaska, West Virginia, Mississippi, Montana, Maryland, South Dakota, and Vermont are the costliest states for mortgages, with rates ranging from 7.05% to 7.22%.
Mortgages' pricing varies between states, thanks to differences in lenders, credit scores, average loan sizes, and local regulations. It's crucial to keep shopping around for the best mortgage deals, even for various types of home loans, as rates can differ significantly among lenders.
Important information: the rates we share here won't directly compare to the attractive, teaser rates you encounter online, as they usually rely on upfront points or cater to hypothetical high-credit-score borrowers with smaller-than-average loans. The rate you receive will depend on factors like your own credit score, income, and more.
National Mortgage Rate Averages
Right now, the 30-year new purchase mortgage averages have experienced some mild fluctuations after a significant 16-point decline. The current average? A reasonable 7.00%, showing an improvement from the May 22 reading of 7.15%, which hit a high over the past year.
Though this year's rates went up a bit, they've still fallen quite a ways compared to March, when they sank to a 2025 low of 6.50%. And in September, they actually plunged to a two-year low of 5.89%.
Check out Today's Mortgage Rates - June 3, 2025 Use our quick Mortgage Calculator to assess various loan scenarios' monthly payments based on your home's price, down payment, loan term, property taxes, homeowners insurance, and interest rate.
The monthly mortgage payment depends on multiple factors, including your home's price, down payment size, loan term, applicable taxes, insurance, and loan interest rate (which is heavily influenced by your credit score). If you're curious about what your payment might be, test the inputs below to get a sense of your potential monthly expenses.
[Click here] >> [Click here] >> Learn More >>
What Causes Mortgage Rates to Fluctuate?
While mortgage rates can be affected by several economic, financial, and market factors, here are some key elements that influence their rise and fall:
- Inflation: When inflation spikes, mortgage rates typically follow suit, as lenders hike rates to maintain purchasing power and ensure profits[1][2].
- Economic Health: A robust economy with high employment and favorable economic indicators can lead to more demand for housing, potentially pushing up mortgage rates[1][2].
- Government Debt Levels: Large government deficits may increase borrowing costs, forcing interest rates up[5].
Federal Reserve Steps
- Federal Funds Rate: Although the Federal Reserve doesn't set mortgage rates directly, changes to the federal funds rate can indirectly influence the overall interest rate environment, impacting mortgage rates[1][5].
- Monetary Policy: The Fed's decisions regarding its balance sheet and monetary policy tools can affect mortgage rates by changing credit availability and interest rates[5].
Market and Financial Influences
- Supply and Demand: High demand for mortgages may cause interest rates to rise, while low demand can have the opposite effect as lenders work to ease borrowers' doubts[2][5].
- Bond Market Fluctuations: The performance of the bond market, notably the 10-year Treasury bond, often impacts mortgage rates because changes in bond yields influence mortgage-backed securities and, thus, mortgage rates[2].
Personal and Loan-Specific Influences
- Credit Score and Down Payment Amount: Your credit score and down payment can factor into your mortgage rate, with better credit scores and larger down payments often resulting in lower rates[2].
- Loan Type and Term: Different mortgage types (fixed-rate vs. adjustable-rate) and terms (e.g., 15-year vs. 30-year) may have varying interest rates[2].
[Reference: 1- MortgageReports; 2- Investopedia; 3- NerdWallet; 4- Forbes; 5- Financial Planning Association]
Methodology
The national and state averages highlighted above are sourced via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (roughly a down payment of 20%) and a credit score ranging between 680 to 739. These rates offer a glimpse of what borrowers can expect when receiving quotes from lenders based on their individual qualifications, which may differ from advertised teaser rates[4].
Discover a Smart Loan Alternative Achieve Your Financial Goals Learn More >>
In the realm of personal-finance and finance, there have been discussions about the regulation of initial coin offerings (ICOs) and digital tokens. This is particularly important because, like mortgages, the pricing of these assets can be influenced by various factors, including market demand, local regulations, and economic conditions.
Given the current trends in finance, understanding the role of regulation in the token market could potentially help in making informed decisions for personal-finance management. It's essential to stay updated on the latest measures being implemented to ensure a secure and transparent digital economy.
