Lowest Refinance Rates Found in These 7 States Today
Cheapest and Most Expensive States for 30-Year Mortgage Refinance Rates
Here's a lowdown on the states offering the most budget-friendly and pricey 30-year mortgage refinance rates. As of late, the top seven low-rate states – New York, California, Florida, Georgia, Texas, Connecticut, and Tennessee – have averages ranging between 6.88% to 7.10%. On the flip side, the high-rate states – West Virginia, Alaska, Washington D.C., Missouri, Utah, and Wyoming – are clocking in averages between 7.21% to 7.30%.
Mortgage refinance rates fluctuate based on where the loans originate. There are numerous lenders operating in different regions, and rates can be affected by variations in credit scores, average loan sizes, and regulations. Additionally, lenders' risk management tactics play a significant role in determining the interest rates they offer.
To secure the most advantageous mortgage deal, it's wise to shop around extensively, comparing rates, and checking often, regardless of the type of home loan you're after.
National Refinance Rate Averages
After experiencing a two-day drop, 30-year refinance mortgage rates have surged for two days, reaching a current average of 7.15%. Although this is a rise compared to mid-April, when rates reached a peak of 7.31%, it's still a slight improvement compared to July 2024 levels.
Back in March, 30-year refinance rates plummeted to 6.71%, marking the cheapest level of 2025, while in September, rates touched a two-year low of 6.01%.
Beware of Teaser Rates
The rates we present won't align with the teaser rates you may encounter online because teaser rates are carefully picked to seem more appealing compared to the averages presented here. Teaser rates often involve advance payments or are based on an ideal borrower with an exceptional credit score or a smaller-than-usual loan size. Keep in mind that the final rate you secure will depend on factors like your credit score, income, and more, making it different from the averages displayed here.
Discover Your Best Mortgage Rate Today - May 12, 2025Use our Mortgage Calculator to estimate monthly payments for various loan scenarios. The amount you'll pay each month is contingent upon factors such as your home price, down payment, loan term, property taxes, homeowner's insurance, and interest rate on the loan (which is significantly determined by your credit score). Use the inputs below to gauge what your monthly mortgage payment could be.
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Factors Influencing Mortgage Rates
Mortgage rates are dictated by a complex interplay of macroeconomic and industry factors, including:
- Bond market and 10-year Treasury yields: Higher bond yields often trigger higher mortgage rates.
- Federal Reserve's monetary policy: The central bank's bond-buying policy and funding for government-backed mortgages can significantly influence mortgage rates.
- Competition between mortgage lenders and loan types: Lender competition and differences in loan types contribute to variations in mortgage rates.
While it's challenging to link the impact of a specific factor to any given shift in rates, economic factors kept the mortgage market relatively low for much of 2021. The Federal Reserve's bond-buying policy was particularly influential during this period. However, starting in November 2021, the Fed began reducing its bond purchases, leading to increases in mortgage rates.
Tracking Mortgage Rates
The national and state averages discussed above are provided as-is via the Zillow Mortgage API, assuming a loan-to-value ratio of 80% and an applicant credit score ranging between 680 and 739. These rates represent what borrowers should anticipate when applying for quotes from lenders, which may differ from advertised teaser rates. © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
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- Regulation in the finance industry, such as guidelines for Initial Coin Offerings (ICOs) and mortgage lending, can impact liquidity in the market, affecting the personal-finance decisions of individuals seeking mortgage refinance.
- digging into the complex factors that drive mortgage rates, one key element is the competition among mortgage lenders offering different loan types, which can lead to variations in the tokens, or interest rates, offered to borrowers.
- Securing the best mortgage deal involves personal-finance management strategies such as comparing different tokens, or interest rates, from various lenders, and regularly checking these rates to find the most advantageous personal-finance option.
