Current Lowest Refinance Mortgage Rates Across States - June 3, 2025
Cheap 30-year mortgage refinance rates are found on Mondays in states like New York, California, Florida, Pennsylvania, Massachusetts, Washington, and Texas. The refi average for these low-rate states ranges between 6.94% and 7.17%. On the contrary, the most expensive 30-year refinance rates are in West Virginia, Alaska, Hawaii, Kentucky, Montana, South Carolina, Wyoming, and Alaska, with averages in the range of 7.25% to 7.28%.
State-level differences in mortgage refinance rates are due to factors such as credit score variations, average loan sizes, and regulations, as well as lenders' risk management strategies. Shopping around for the best mortgage option and regularly comparing rates is excellent advice, no matter the type of home loan you pursue.
As of June 3, 2025, the 7.21% average nationwide for 30-year refinance mortgages has inched up for two consecutive days, though it's still lower than the May 22 high of 7.32%. In March, rates plummeted to a 2025 low of 6.71%, while in September, they dropped to a two-year low of 6.01%.
Avoid falling for teaser rates advertised online, which can be misleading, as they're often based on hypothetical borrowers with an ultra-high credit score, smaller-than-average loans, or added fees. To get a sense of your monthly mortgage payment, try the Mortgage Calculator below with inputs tailored to your situation.
Mortgage rates swing due to a constellation of macroeconomic and industry factors. These include the bond market, Federal Reserve policies, competition among lenders, and loan types. Changes in multiple factors can cause simultaneous fluctuations, making it challenging to pinpoint a single cause.
For much of 2021, the Fed's bond-buying policy kept mortgage rates relatively low. However, the Fed started tapering its bond purchases in November 2021, leading to upward pressure on rates. Between November 2021 and July 2023, the Fed aggressively raised the federal funds rate to combat high inflation. Even though the federal funds rate doesn't directly affect mortgage rates, the substantial increases indirectly caused mortgage rates to rise dramatically over the past two years.
The Fed held the federal funds rate at its peak level for almost 14 months, starting in July 2023. However, it announced a first rate cut of 0.50 percentage points in September, followed by further reductions in November and December.
Although the Fed opted to hold rates steady for its third meeting of the new year, we may not see additional rate cuts for quite some time with just eight rate-setting meetings scheduled per year.
Mortgage rates are provided as is via the Zillow Mortgage API, assuming an 80% loan-to-value ratio (down payment of at least 20%) and an applicant credit score in the 680-739 range. These rates reflect what borrowers can expect based on their qualifications, which may vary from advertised teaser rates. Seize control of your mortgage options today!
[1] Federal Reserve funds rate history - https://www.federalreservehistory.org/digital-library/browse-all-resources?q=funds%20rate%20history[2] Mortgage Rates Today - https://www.nerdwallet.com/blog/loans/mortgages/mortgage-rates/[3] What Causes Mortgage Rates to Rise and Fall? - https://www.realtor.com/advice/home-improvement/causes-of-high-mortgage-rates/[4] Why Interest Rates Are Rising - https://www.investopedia.com/terms/i/interest_rate_hike.asp[5] Why Are Mortgage Rates So High? - https://www.thebalance.com/mortgage-rates-factor-by-factor-high-1289971
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