Current Mortgage Rates Across States - 23rd May, 2025
In observance of Memorial Day, Investopedia will not publish daily mortgage rate news on Monday, May 26. Resumption of regular coverage is expected on Tuesday, May 27.
On Thursday, eight states – New York, California, New Jersey, Kentucky, Indiana, North Carolina, Tennessee, and Texas – recorded the lowest 30-year new purchase mortgage rates, with averages ranging from 7.04% to 7.12%. Alaska, Washington D.C., West Virginia, Hawaii, Iowa, New Mexico, and Maryland, however, held the highest averages of 7.21% to 7.30%.
State-specific mortgage rates depend on factors such as differing lender operations, state credit scores, average loan sizes, and regulations, along with lenders' varying risk management strategies. Shopping around for the best mortgage option and routinely comparing rates is always recommended, regardless of the type of home loan sought.
Please note that the published rates may not directly compare with advertised online teaser rates. These teaser rates often involve upfront points or cater to borrowers with high credit scores or smaller-than-average loans. The rate secured ultimately relies on factors including credit scores, income, and more, so it may vary from the averages provided.
The average for 30-year new purchase mortgages increased by 4 basis points on Thursday, reaching 7.15%. This mark represents the most expensive level since May 2024. In contrast, rates dropped to 6.50% in March, the cheapest average of 2025, and plunged to a two-year low of 5.89% in September.
You can compare today's mortgage rates on our Mortgage Calculator, considering home price, down payment, loan term, and other factors impacting monthly payments. Your credit score plays a significant role in determining your interest rate on the loan.
Mortgage rates are determined by complex interactions of macroeconomic and industry factors, such as bond market levels and direction, the Federal Reserve's monetary policy, competition between lenders, and loan types. While attributing changes to a single factor is challenging, macroeconomic factors kept the mortgage market relatively low for much of 2021 due to the Federal Reserve's bond-buying policy, which responded to pandemic-induced economic pressures[1][3].
Between November 2021 and March 2022, the Fed reduced its bond purchases, causing mortgage rates to rise steadily[1]. Subsequently, the Fed aggressively raised the federal funds rate to counter decades-high inflation[2]. While the fed funds rate does not directly affect mortgage rates, the indirect influence was substantial due to the swift and dramatic increase over the last two years.
Since July 2023, the Fed has maintained the federal funds rate at its peak level, but in September, the central bank announced a 0.50 percentage point rate cut, followed by quarter-point reductions in November and December[2]. This month, the Fed opted to hold rates steady, and it's possible they may not reduce rates again for several months[2].
Investors in the field of personal-finance might consider the potential impact of regulatory changes on ico and token investments, as these emerging markets can be influenced by regulatory bodies. For instance, regulation-driven changes in the finance industry could affect the affordability of real-estate investments, since mortgage rates are affected by complex interactions of macroeconomic and industry factors, such as the Federal Reserve's monetary policy. Shopping around for the best mortgage option, comparing rates regularly, and understanding the impact of one's credit score on interest rates are essential strategies in managing mortgage-related personal-finance.
