Lowest Refinance Interest Rates in Each State - June 4, 2025
Cheapest and Most Expensive States for 30-Year Mortgage Refinance Rates
Spring Fling with Low Rates
The wind is blowing in the right direction for those looking to refinance their 30-year mortgages in New York, California, Texas, Washington, Connecticut, Florida, New Jersey, and Pennsylvania. These states are currently offering some of the lowest refi averages, ranging from 6.99% to 7.11%. That's the good news!
However, steer clear of West Virginia, Kansas, Hawaii, Idaho, Missouri, North Dakota, and Wyoming if you don't want to stretch your wallet too much. These states are home to the most expensive 30-year refinance rates, with averages ranging from 7.23% to 7.26%.
Lender's Playground
It's essential to remember that mortgage refinance rates differ from one state to another due to the influence of regional lenders, state-level variations in credit scores, loan sizes, and regulations, and varying risk management strategies among lenders. To secure the best mortgage deal, it's always a smart move to shop around and compare rates regularly[1].
National Refinance Rate Averages
The 30-year refinance mortgage rates saw a slight drop of 4 basis points on Tuesday, settling at an average of 7.17%. Although that's an improvement from the May peak of 7.32%, it's still no match for the 6.71% average back in March 2025, which hit the lowest 2025 mark. Just last September, the rates plummeted to a 2-year low of 6.01%.
Beware of Teaser Rates
Do keep in mind that the rates we publish aren't directly comparable to the teaser rates you might stumble upon online. These "cherry-picked" rates often cater to ideal borrower scenarios, including excellent credit scores or smaller-than-average loans, which may not align with your unique situation[1].
Tinker with Our Mortgage Calculator
Don't underestimate the impact of your credit score, home price, down payment, loan term, and interest rate on your monthly mortgage payment[2]. Use our calculator to estimate your monthly expense and find the best deal[1].
What Moves the Mortgage Market?
Mortgage rates are like a dance between macroeconomic factors and industry influences. Key considerations include:
- Bond Market: 10-year Treasury yields play a significant role in shaping mortgage rates.
- Federal Reserve's Monetary Policy: The central bank's bond-buying policy can have a substantial impact on mortgage rates, particularly when it comes to government-backed mortgages.
- Competition: Lenders compete for business, and this competition can drive down rates.
Understanding these factors can help you navigate the mortgage landscape and make informed decisions[1].
A Long Game
During 2021, macroeconomic factors kept mortgage rates relatively low. However, in November 2021, the Fed began reducing its bond purchases, and in 2022, it aggressively raised the federal funds rate to combat inflation[1]. The Fed's quick and significant rate increases have had a noticeable impact on mortgage rates over the past two years.
Staying the Course
In September 2023, the Fed announced its first rate cut, followed by further decreases in November and December[1]. For its third meeting of 2025, the Fed opted to hold rates steady. Multiple rate-hold announcements are possible in 2025[1].
(1 Zillow Mortgage API data. ChartHop, "State Macroeconomic Conditions," fetched 2023. *Urban Institute, "Race, ethnicity, place: New trends and disparities," fetched 2023.)
In the dynamic world of personal-finance, it is crucial to stay informed about the regulation of Initial Coin Offerings (ICOs) in the financial sector. As securitized tokens gain popularity, understanding how regional lenders, state-level variations in credit scores, loan sizes, and regulations impact mortgage rates is essential for securing the best mortgage deal. For instance, the latest data indicates that some states offer lower 30-year refinance averages, while others involve higher expenses. Therefore, it's advisable to shop around and compare rates regularly to optimize your personal-finance situation.
