Lowest Mortgage Rates Today Across Multiple States - July 18, 2025
In the current economic climate, mortgage rates vary significantly across the United States. Here's a breakdown of the average 30-year fixed mortgage rates in various states as of late July 2025.
The national average for a 30-year fixed mortgage stands at 6.91%, but some states offer more favourable rates. For instance, in Oklahoma, the average rate is around 6.89%, while in Washington, you might see an average rate of 6.84%. California, Texas, and New York follow closely, with average rates of 6.82%, 6.86%, and 6.78% respectively.
The Fed has reaffirmed plans for two more rate cuts in 2025, but the timing of these cuts is a subject of debate among policymakers. The Fed cut rates three times in late 2024, and analysts project that 30-year mortgage rates could decline to around 5% by 2028 if the Fed follows through with its planned rate cuts.
Several factors influence mortgage rate variations by state. Lender presence and competition, state-level regulations, borrower credit profiles, average loan size, and local economic and market conditions all play a role. States with more mortgage lenders tend to have more competition, leading to lower mortgage rates. Differences in state laws and regulations impact lenders' operational costs and risks, affecting rates passed on to borrowers.
States with higher average credit scores among borrowers generally see lower mortgage rates because lenders view these borrowers as less risky. Smaller average loan amounts in some states can lead lenders to charge higher rates to maintain profitability since fixed costs do not scale down proportionally. Robust real estate markets with high property values and dense populations tend to enjoy more favorable rates due to heightened competition and demand.
To find the states offering the lowest 30-year fixed mortgage rates, one can consult up-to-date mortgage rate reports and analyses by reputable real estate and financial websites like Norada Real Estate, Zillow, and Investopedia, which regularly analyze state-by-state mortgage rate data. It's also essential to consider local lender offerings and state-specific economic conditions, as rates can fluctuate and lenders vary regionally.
As of late July 2025, states frequently cited for having some of the lowest average rates (typically in the range of approximately 6.56% to 6.83%) include New York, California, New Jersey, Colorado, Connecticut, Florida, Utah, Washington, North Carolina, Massachusetts, Tennessee, Michigan, Virginia, Arizona, and Oregon. These states benefit from a combination of the above factors, especially strong lender presence and competitive markets.
Remember, improving your credit score is the single biggest factor you can control to get the best mortgage rate. The Federal Reserve's actions, such as bond purchases and setting the federal funds rate, also impact mortgage rates. Staying informed through current mortgage market data can help identify where the most attractive 30-year fixed mortgage rates are being offered.
In conclusion, understanding the factors that influence mortgage rates and staying informed about the current market can help you secure the best possible mortgage rate. Shopping around and comparing rates, fees, and terms from multiple lenders can also help you get the best deal.
Investing in real estate can be attractive given the varying mortgage rates across different states. The growth of a personal-finance portfolio may benefit from considering the turnkey investment opportunities in states like New York and California, where the average 30-year fixed mortgage rates are lower compared to the national average.
The management of mortgage rates not only depends on the Federal Reserve's decisions regarding interest rate cuts but also on local economic and market conditions, borrower credit profiles, and lender competition within a state.
Finance analysts predict a decline in 30-year mortgage rates to around 5% by 2028 if the Fed follows through with planned rate cuts. By being informed about these changes and regularly consulting real-estate and financial websites like Norada Real Estate, Zillow, and Investopedia, potential buyers can find the best states offering the lowest 30-year fixed mortgage rates.
Investing in real estate, however, requires careful planning and analysis. Improving one's credit score is essential for securing a favorable mortgage rate, and shopping around to compare rates, fees, and terms from multiple lenders can help in securing the best deal.
Remember, the current economic climate offers opportunities for interested investors. Seeking guidance from mortgage experts, real-estate agents, and financial advisors can help in making informed decisions about mortgage investing.
By understanding the factors impacting mortgage rates and staying informed about the market, you can navigate the real-estate landscape more confidently and make sound investment decisions for your future.
