Today's Lowest Mortgage Refinance Rates Found in These Three States - May 2, 2025
Chatty Article:
Hey there! So, the states with the cheapest 30-year mortgage refinance rates this week are a thrifty bunch, with New York, Texas, and Pennsylvania taking the top spots. Following close behind, you'll find California, Tennessee, and Washington, joined by a large group including Georgia and Illinois. The rates for these states are hanging tough between 6.77% and 7.00%.
On the other side of the spectrum, let's talk about the states with the highest refinance rates. That list consists of West Virginia, Maryland, Washington, D.C., Alaska, South Carolina, Kentucky, Missouri, North Dakota, Oregon, and South Dakota. They're sailing in a different league, with refi averages ranging from 7.07% to 7.15%.
You might wonder, what's the secret to these rate differences? Well, it's a mix of factors depending on where the loan originates. Different lenders operate in different regions, and rates can be swayed by regional variations in credit scores, average loan sizes, and regulations. Plus, lenders have diverse risk management strategies that can affect the rates they offer.
So, were you feeling coast-to-coast apathy about the mortgage market? Well, it's time to get moving – shop around for the best deal and compare rates regularly, no matter what type of home loan you're eyeing.
Got your attention?
We do have to add a disclaimer, though – these rates aren't your typical advertised rates you'd see online. Ours are averages, including the numbers for so-so credit scores. Advertised rates can be cherry-picked, and they often come with strings attached, like hefty upfront fees or requirements for stellar credit scores or smaller-than-average loans.
National Mortgage Refinance Rate Averages
The 30-year refinance rates had a rollercoaster April and are currently down to 7.03%, following a mild dip. To put things into perspective, in early April, these rates surged an impressive 40 basis points in a week, hitting an April 11 high of 7.31%. In contrast, in March, they hit their cheapest level of 2025, sinking to 6.71%. And let's not forget that they dropped to a two-year low of 6.01% back in September.
Compare Today's Mortgage Rates - May 2, 2025
Want a glimpse of what your monthly payments might look like? Our Mortgage Calculator can help you out. Just plug in your home price, down payment, loan term, property taxes, homeowners insurance, and interest rate to get an idea of your monthly mortgage payment.
What Causes Mortgage Rates to Rise or Fall?
The answers lie in a tangled web of macroeconomic and industry factors, including:
- The Bond Market: The movements of various segments of the bond market, particularly the 10-year Treasury yield, significantly impact mortgage rates. Rising bond prices often lead to lower mortgage rates, while falling bond prices usually mean higher mortgage rates.
- The Federal Reserve's Policy: The Fed's decisions on interest rates and monetary policy have a profound impact on investor confidence and economic outlook. Lower interest rates and bond-buying policies tend to keep mortgage rates low, while raising rates and selling bonds can push mortgage rates upward.
- Economic Trends: Inflation rates, consumer demand, housing supply, and the overall strength of the economy help shape mortgage rates.
Because changes in these factors often happen simultaneously, it can be difficult to attribute any particular move in mortgage rates to a single cause.
For much of 2021, the mortgage market remained relatively low, due to the Federal Reserve's bond-buying policy, which was a response to the pandemic's economic pressures. However, starting in November 2021, the Fed began reducing its bond purchases, known as tapering. It made significant monthly cuts until reaching net zero in March 2022.
From November 2021 to July 2023, the Fed hiked the federal funds rate aggressively to combat high inflation. While the fed funds rate can indirectly affect mortgage rates, it doesn't directly do so. In some cases, the fed funds rate and mortgage rates may move in opposite directions.
The Fed raised the federal funds rate to an unprecedented peak level from July 2023 and held it at that level for almost 14 months. However, in September, the central bank cut the rate for the first time, by 0.50 percentage points. It followed that move with quarter-point reductions in November and December.
The Fed opted to hold rates steady for its first meeting of the new year and may not issue another rate cut for quite some time. With eight rate-setting meetings scheduled annually, that translates to months of rate holding announcements in 2025.
How We Track Mortgage Rates
The national and state averages we've shared are provided to us via the Zillow Mortgage API, assuming an LTV ratio of 80% (or a down payment of at least 20%) and an applicant credit score within the 680-739 range. The result is the rate that borrowers can expect when they receive quotes from lenders based on their qualifications, which may differ from advertisements. Translation: while teaser rates may look enticing online, they may not match your real-life borrowing experience! © Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
- In Maryland, the average 30-year mortgage refinance rate is relatively high, falling within the range of 7.07% to 7.15%.
- Factors such as regional variations in credit scores, average loan sizes, and regulations play a role in influencing mortgage rates across different regions.
- If Maryland residents are looking to refinance, they might want to consider comparing tokenized securities in Initial Coin Offerings (ICOs) as an alternative investing method for business ventures, such as real-estate, to help with refinancing costs.
- Investors should be cognizant that advertised mortgage rates often come with hidden fees and stringent credit score requirements.
- Regulation and other factors affecting lenders' risk management strategies can also significantly impact the mortgage rates offered to potential borrowers.
- By shopping around and regularly comparing mortgage rates, even in states with high average refinance rates like Maryland, borrowers increase their chances of finding a more favorable rate.
