Current Lowest Refinance Rates Across States - May 23, 2025
In commemoration of Memorial Day, Investopedia will abstain from publishing daily mortgage rate updates on Monday, May 26. Regular coverage will resume on Tuesday, May 27.
Thursday saw the following states offering some of the most affordable 30-year mortgage refinance rates: California, Florida, New York, Tennessee, Connecticut, Washington, North Carolina, and New Jersey. The average refinance rates in these affordable states ranged between 7.14% and 7.28%.
Meanwhile, the most expensive 30-year refinance rates on Thursday were registered in Hawaii, West Virginia, Alaska, Kansas, Missouri, and South Dakota. The range of refinance averages for these high-rate states was 7.38% to 7.44%. Regional differences in credit scores, loan sizes, and regulations impact loan rates, as multiple lenders serve various regions. Prices fluctuate due to each lender's unique risk management techniques.
Comparing rates across lenders to secure the optimal mortgage is always advantageous, as rates diverge significantly across providers. Prudence in shopping around and consistently evaluating rates, regardless of your intended home loan, is highly recommended.
The latest national average for 30-year refinance mortgages increased by 2 basis points on Thursday, reaching 7.32%. This figure marks the highest since July 30, 2024. Previous lows in 2025 were observed in March, with an average of 6.71%, and in September, with a two-year low of 6.01%.
Advertised rates may differ significantly from the averages mentioned, as they often involve teaser rates for hypothetical high-credit-score borrowers, additional payments, or lower-than-typical loan sizes. The rate you eventually receive will be contingent upon your personal credit score, income, and other factors.
Macroeconomic elements, including inflation, federal policy, bond market activity, supply-demand dynamics, employment, and economic growth, impact mortgage rates. A solid credit score, ample down payment, and appropriate loan type can help secure lower rates. Regional variations in economic conditions influence rates as well.
For more precise mortgage calculations and monthly payment estimates, use our Mortgage Calculator.
Rate fluctuations are caused by a complex interplay of macroeconomic factors, such as the level and direction of the bond market, the Federal Reserve's monetary policy, and competition between mortgage lenders. Changes in these factors often make it difficult to pinpoint a specific reason for rate fluctuations.
Since 2021, low mortgage rates were mainly attributed to the Federal Reserve's bond-buying policy, intended to alleviate the economic pressures of the pandemic. Starting in November 2021, the Fed began tapering its bond purchases, leading to increased rates, and raising the federal funds rate to fight inflation between 2022 and 2023. The speed and magnitude of these Fed rate increases significantly impacted mortgage rates throughout the last two years.
Investors should consider the impact of regional regulations on ico investments when investing in real-estate, given that regional differences in credit scores, loan sizes, and regulations affect loan rates, with multiple lenders serving various regions.
When evaluating mortgage options, it's crucial to compare rates across lenders to secure the optimal mortgage, as rates can diverge significantly across providers, and advertised rates may differ significantly from the averages mentioned due to factors like teaser rates for high-credit-score borrowers, additional payments, or lower-than-typical loan sizes.
