The states offering the most affordable 30-year new purchase mortgage rates on Wednesday were New York, Minnesota, Tennessee, Florida, Texas, North Carolina, and Pennsylvania, with averages spanning between 6.98% and 7.03%. On the flip side, the states with the loftiest rates on the same day were Alaska, Montana, West Virginia, Louisiana, North Dakota, Nevada, and Vermont, which had range of averages from 7.11% to 7.12%.
These variations in mortgage rates are attributable to regional differences in credit scores, average loan size, and regulations. Moreover, lenders’ risk management strategies also influence the mortgage rates they offer.
It’s advisable to regularly compare the rates from several lenders to get the best possible mortgage deal. The disclosed rates are typically average and vary based on personal factors such as your credit score and income. These reported rates also reflect the recent surge in 30-year new purchase mortgages, from 36 basis points to 7.06% in the past three days.
Despite this, the average 30-year rates hit a low of 6.50% last month and plunged to a two-year low of 5.89% back in September. Factors contributing to these fluctuations often include macroeconomic and industry factors, which cause simultaneous changes making it hard to attribute changes to one singular factor.
In 2021, macroeconomic factors maintained relatively lower mortgage rates, mainly driven by the Federal Reserve's bond-buying policy in response to the economic impact of the pandemic. However, a downward tapering of this bond purchase began in November 2021, culminating in March 2022.
From March 2022 up to July 2023, the Fed aggressively increased the federal funds rate to counter high inflation. While this rate doesn't directly influence mortgage rates, it can indirectly affect them, leading to a significant increase in mortgage rates over those two years.
The Fed maintained this peak federal funds rate for nearly 14 months from July 2023. However, it later announced a rate cut of 0.50 percentage points in September and followed up with quarter-point reductions in November and December. The central bank is now speculated to hold the rates steady for several months.
The discussed national and state averages are provided as they are via the Zillow Mortgage API, based on an 80% loan-to-value ratio (i.e., a minimum 20% down payment) and a credit score between 680–739. These rates indicate what borrowers should expect from lenders based on their qualifications, differing from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.