Top States for 30-Year Mortgage Refinance Rates (May 15, 2025)
Current Minimum Refinance Rates Per State – May 15, 2025
Today's cheapest states for a 30-year mortgage refinance are: New York, California, North Carolina, Texas, Florida, Alabama, Illinois, Arizona, Connecticut, and Washington, boasting refi averages ranging from 6.95% to 7.20%.
On the other hand, Alaska, West Virginia, South Carolina, Maryland, Rhode Island, Washington, D.C., Montana, and South Dakota claim the most expensive refinance rates, with 30-year averages of 7.30% to 7.33%.
Mortgage refinance rates can significantly vary depending on the state's unique economic and regulatory landscape. While national lenders operate in various regions, regional variations in credit score, average loan size, and local regulations shape how rates play out.
To snag your best possible mortgage deal, never shy away from shopping around different lenders or comparing rates regularly, regardless of the type of home loan you seek.
National 30-Year Refinance Rate Trends
After a temporary dip, 30-year refinance rates have bounded back, currently standing at 7.24%, up by 8 basis points over the last week. Despite the recent surge (reaching a peak of 7.31% in mid-April, the highest since July 2024), they still represent a slight improvement compared to their mid-April highs.
In March, rates slumped to a 2025 low of 6.71%. Looking as far back as September 2024, they even dipped to a two-year nadir of 6.01%.
Caveat: Beware of Teaser Rates
The rates you encounter online may not align directly with these averages as many ads lean on attractive, teaser rates that overlook crucial details like points, high credit requirements, or unique scenarios. Your ultimate mortgage rate will hinge on a variety of factors, such as your credit score, income, geographic location, and more.
Calculate your monthly mortgage payments using our Mortgage Calculator for different loan scenarios. We'll consider factors like home price, down payment, loan duration, property taxes, homeowners insurance, and interest rates (sensitive to your credit score).
What Determines Mortgage Rates?
Mortgage rates are subject to fluctuation in response to a complex combination of macroeconomic and industry factors such as:
- Bond market levels and trends, with a focal point on 10-year Treasury yields
- The Federal Reserve's monetary policy, including bond buying and government-backed mortgage funding
- Competition among mortgage lenders and loan types
It's difficult to attribute changes in mortgage rates to a single factor given the simultaneous influence of multiple factors.
Factors like the Federal Reserve's monetary policy have impacted mortgage rates in 2021 by driving bond purchases, which, in turn, have kept rates relatively low. However, the Fed's tapering of bond purchases and subsequent federal funds rate increases from November 2021 through July 2023 dramatically contributed to rising mortgage rates over the last two years.
The central bank held the federal funds rate steady for almost 14 months, from July 2023, before announcing its first rate cut in September and further reductions in November and December.
While the third meeting of 2025 saw the Fed maintaining the status quo, anticipate multiple rate-hold announcements in the upcoming year.
How We Track Mortgage Rates
The national and state averages mentioned previously are obtained via the Zillow Mortgage API, assuming a down payment of at least 20% (loan-to-value ratio of 80%) and a credit score within the 680-739 range. This reflects the rates that borrowers could anticipate receiving from lenders based on their qualifications, which may differ from the semi-artificial teaser rates advertised online.
© Zillow, Inc., 2025. Usage is contingent upon the Zillow Terms of Use.
Enrichment Data:
Mortgage rates are influenced by a diverse set of factors, which can be categorized into macroeconomic and individual or state-specific factors.
Macroeconomic Factors
- Inflation Rate: High inflation tends to push up mortgage rates as lenders try to compensate for eroding purchasing power.
- Federal Reserve Policy: Monetary policy actions, specifically changes in the federal funds rate and bond buying, play a crucial role in mortgage rates. During periods of bond purchases, rates tend to drop, and they often increase when bonds are sold.
- Economic Growth: Strong economic growth typically drives up mortgage rates due to higher demand and increased costs.
- Global Economic Trends: International events and economic conditions affect mortgage rates by influencing investor confidence and demand for mortgage-backed securities.
State-Specific and Individual Factors
- Credit Score: Borrowers with solid credit usually qualify for lower mortgage rates due to being considered less risky.
- Down Payment: Bigger down payments lower lenders' risk, often translating to better interest rates.
- Loan Type and Terms: Different mortgage types, such as FHA, conventional, or adjustable-rate mortgages, carry varying interest rates.
- Average Loan Size: Regions with higher property values typically have larger loan amounts, which influence rates.
- Lender Competition: Increased competition among lenders can lead to differences in mortgage rates, as lenders may offer more competitive rates to lure borrowers.
- State Regulations: Local regulations and housing market conditions can also shape mortgage rates by impacting demand and supply dynamics.
These influencing factors interact and contribute to the varying mortgage rates across states.
- In the realm of personal-finance, considering the unique economic and regulatory landscape of each state can significantly impact 30-year mortgage refinance rates.
- For those who are into investing and seeking the most competitive mortgage rates, shopping around different lenders and comparing rates regularly is essential, regardless of whether you're interested in real-estate or other types of home loans.
- When examining national trends, while macroeconomic factors like bond market levels, Federal Reserve policy, and competition among mortgage lenders play a crucial role in determining mortgage rates, local regulations and state-specific factors such as credit score, average loan size, and geographic location also shape how rates play out.
