States with Lowest Mortgage Rates on July 10, 2025: A Review

States with Lowest Mortgage Rates on July 10, 2025: A Review

Mortgage Rates Vary Across U.S. States in July 2025

The mortgage market in the United States has shown geographical disparity as of July 10, 2025, with states offering different mortgage rates. This disparity is primarily due to a combination of local economic conditions, housing market competition, and regional banking practices.

Local economic conditions play a significant role in determining mortgage rates. States with stronger economic growth, lower unemployment, and more robust housing demand often experience different mortgage rate dynamics due to lender risk assessments and borrower credit profiles. For instance, areas like New York and California, with strong economic growth, have some of the lowest refinance rates.

Housing market competition and inventory levels also impact mortgage rates. Tighter housing supply or high demand can lead to more competitive mortgage rates, as seen in some Northeast states and California. On the other hand, regions with slower home price appreciation or higher for-sale inventory, such as parts of Texas and Florida, may see higher mortgage rates due to lenders’ risk models.

Regional banking and lending practices also contribute to rate disparities. Different states have distinct banking market structures and borrower profiles that influence offered rates. For example, variations in how regional banks and mortgage lenders underwrite loans, their cost structures, and risk appetites contribute to rate differences.

The prevalence of different loan types and mortgage products can also affect average mortgage rates regionally. The states with the lowest 30-year new purchase mortgage rates are New York, California, Connecticut, New Jersey, Florida, Georgia, North Carolina, Oregon, and Pennsylvania, offering rates between 6.56% and 6.79%. Conversely, the states with the highest 30-year mortgage rates are Alaska, North Dakota, West Virginia, Iowa, Mississippi, New Mexico, Arkansas, South Dakota, Vermont, and Wyoming, with rates in the 6.90% to 6.97% range.

Other factors influencing mortgage rates from state to state include lender presence, risk management strategies, credit score averages, average loan size, and state regulations. Shopping around for multiple lenders, negotiating with lenders, and maintaining a high credit score can help secure a better mortgage rate.

In terms of loan types, a fixed-rate mortgage has an interest rate that stays the same for the entire loan term, providing predictability for borrowers. An Adjustable-Rate Mortgage (ARM) has an interest rate that is fixed for a period and then adjusts periodically based on market conditions.

The Federal Reserve's monetary policy, inflation, economic growth, competition, and the Fed's ongoing influence all play a role in determining mortgage rates. The Fed has strongly emphasized data dependence and has plans for two rate cuts in 2025. However, the Fed's subsequent meeting on July 30, 2025, is likely to result in a hold.

The national average for a 30-year fixed (new purchase) mortgage is 6.83%. Other loan types include FHA 30-year fixed (7.55%), 15-Year Fixed (5.84%), Jumbo 30-Year Fixed (6.83%), and 5/6 ARM (7.50%). The average 30-year new purchase mortgage rate dropped 4 basis points to 6.83% on July 10, 2025.

It is essential for homebuyers and refinancers to understand the factors influencing mortgage rates in their area and to shop around for the best possible rate. By doing so, they can secure a mortgage that best suits their financial situation and long-term goals.

[1] "Geographic Disparities in Mortgage Rates: What Factors Drive Regional Variations?" Freddie Mac. (2025). [2] "Understanding Mortgage Rates: A Comprehensive Guide." Bankrate. (2025).

1. The mortgage market in the U.S. exhibits geographical disparities, with states offering different mortgage rates as of July 10, 2025, primarily due to local economic conditions, housing market competition, and regional banking practices.
2. Areas like New York and California, with strong economic growth, have some of the lowest refinance rates, demonstrating the impact of local economic conditions on mortgage rates.
3. Housing market competition and inventory levels also impact mortgage rates, with Tighter housing supply or high demand leading to more competitive mortgage rates in some Northeast states and California.
4. The states with the lowest 30-year new purchase mortgage rates are New York, California, Connecticut, New Jersey, Florida, Georgia, North Carolina, Oregon, and Pennsylvania, offering rates between 6.56% and 6.79%.
5. Factors such as lender presence, credit score averages, average loan size, state regulations, and risk management strategies also influence mortgage rates from state to state.
6. In terms of loan types, a fixed-rate mortgage offers predictability for borrowers, while an Adjustable-Rate Mortgage (ARM) has an interest rate that adjusts periodically based on market conditions.

Read also: