Today's Lowest Mortgage Rates Found in These Two States - May 2, 2025
Loan Alert: Today's cheapest 30-year new purchase mortgage rates are found in New York and Washington. Here's a rundown for the rest of the pack: Tennessee, Texas, California, Florida, Michigan, North Carolina, and Pennsylvania. Some states have rates averaging between 6.68% and 6.85%.
In stark contrast, high mortgage rates can be found in Alaska, West Virginia, Washington D.C., Maryland, North Dakota, Rhode Island, and New Mexico. These states have averages falling between 6.94% to 7.04%.
Mortgage rates are a moving target, influenced by several factors such as credit score, average loan size, and geographical regulations. Lenders also have individual risk management strategies that impact rate quotes. So, shopping around for your ideal mortgage deal and regularly comparing rates is your best bet, regardless of loan type.
Note: Published rates might not match flashy online advertisements. Advertised rates usually target ideal borrowers with top-tier credit scores and smaller loans. The rate you actually secure will depend on your credit score, income, and other factors.
National Mortgage Rate Averages
April was a rollercoaster ride for 30-year new purchase mortgages, but things have settled down recently. After dipping 2 basis points on Thursday, the 30-year national average is currently at 6.88%. In April, rates saw a dramatic surge, pushing the average up to 7.14%, an increase since May 2024.
However, in March 2025, rates plummeted to a 2025 low of 6.50%. In September, rates plunged to a two-year minimum of 5.89%.
Action Required: Compare today's mortgage rates by giving our Mortgage Calculator a go. This tool can help you calculate monthly payments for different loan scenarios based on your home price, down payment, loan term, property taxes, homeowners insurance, and loan interest rate.
Pro Tip: Your mortgage payment will typically be determined by your credit score, income, and several other variables. Adapt the calculator inputs to get a sense of what your monthly mortgage payment might look like.
What Causes Mortgage Rates to Fluctuate?
Mortgage rates are the result of multiple complex factors, including:
- Bond market fluctuations: The 10-year Treasury yield often serves as a benchmark for mortgage rates, with an inverse relationship between bond prices and rates[5]. Whenever bond prices go up (due to increased demand), yields tend to fall, pulling mortgage rates down[5].
- Federal Reserve (the Fed) policy: Even though the Fed doesn’t directly set mortgage rates, its adjustments to the federal funds rate impact investor expectations. For example, anticipated rate cuts can help reduce long-term borrowing costs, indirectly lowering mortgage rates[1][2].
- Inflation and economic growth: Elevated inflation is often followed by rate increases, while economic cooling can lead to rate declines[2][4].
On the State Level:
- Local housing markets: High-demand, low-supply states often see higher home prices, which can encourage competitive mortgage pricing as lenders adapt to market conditions[1][3].
- Regulatory environment: State legislation and taxes can influence lender risk assessments and, to a degree, impact mortgage rates[1][4].
- Credit union competition: In states with strong credit union presence, rates may be lower due to their not-for-profit nature[4].
While macroeconomic trends set the baseline, state-specific conditions, lender competition, and borrower factors generate regional rate variations[1][4].
- In the realm of personal-finance, adjusting to the current mortgage market requires comparing today's rates with our Mortgage Calculator to assess monthly payments in different scenarios.
- The current national average for 30-year new purchase mortgages stands at 6.88%, having dipped 2 basis points on Thursday after a volatile April when rates surged to 7.14%.
- publication rates may not align with the flashy online advertisements, as advertised rates often cater to ideal borrowers, so it's essential to consider factors like credit score, income, and loan size when securing your mortgage.
- Mortgage rates are impacted by the bond market, with the 10-year Treasury yield serving as a benchmark, and the Federal Reserve's policies, such as adjustments to the federal funds rate, influencing investor expectations and, indirectly, mortgage rates.
- Regional fluctuations in mortgage rates can also be attributed to local housing market conditions, regulatory environments, and credit union competition on the state level.
- In real-estate finance, understanding the interconnection between factors like bond market fluctuations, the Federal Reserve's policy, inflation, economic growth, local housing markets, regulatory environments, and credit union competition can help investors navigate the intricacies of mortgage rate fluctuations.
