Unlock Your Dream Home: Today’s Mortgage Rates by State (Dec 24, 2024)
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Heads up: Daily mortgage rate updates will take a break on Wednesday, December 25, for Christmas. We’ll be back in action on Thursday, December 26!
If you’re in the market for a new home, you’ll want to know where the best mortgage rates can be found. As of Monday, the states boasting the most wallet-friendly 30-year mortgage rates include New York, California, Florida, Tennessee, Texas, Washington, Massachusetts, and Ohio, with rates ranging from 6.77% to 6.92%.
On the other hand, if you find yourself in Alaska, Washington, D.C., Iowa, Maine, Maryland, North Dakota, Rhode Island, Utah, or Wyoming, be prepared for higher averages, which are sitting between 7.02% and 7.09%.
Remember, mortgage rates are influenced by various factors, including the state where you apply. Each region has its own set of lenders, and state-specific variables like credit scores, average loan sizes, and regulations can all sway the rates you receive.
With rates fluctuating across lenders, it’s wise to shop around for the most competitive mortgage options. Don’t settle; compare rates regularly to find the deal that’s right for you!
Be cautious of those eye-catching teaser rates you see online—they’re often not what they seem. These rates are typically based on ideal scenarios, like a borrower with an exceptional credit score or a smaller loan amount. The rate you’ll actually receive will depend on your unique financial situation, including your credit history and income.
National Mortgage Rate Averages
After a rush in rates last week, the average for 30-year new purchase mortgages has ticked back up, now resting at 6.95%. Just a couple of months ago in September, we saw rates dip to a refreshing 5.89%, the lowest in two years. Although they’re still elevated, they’re currently sitting below the summer highs that crested above 7%.
| National Averages of Lenders’ Best Mortgage Rates | |
|---|---|
| Loan Type | New Purchase |
| 30-Year Fixed | 6.95% |
| FHA 30-Year Fixed | 6.28% |
| 15-Year Fixed | 6.14% |
| Jumbo 30-Year Fixed | 6.87% |
| 5/6 ARM | 7.44% |
| Provided via the Zillow Mortgage API | |
Want to crunch some numbers? Use our Mortgage Calculator to estimate monthly payments for various loan options!
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are impacted by a multitude of macroeconomic factors, making their fluctuation a complex dance of various influences:
It’s notoriously tricky to pin down the reasons for a rate change since numerous factors can shift at once.
Low rates characterized much of 2021, primarily due to the Federal Reserve’s aggressive bond-buying to counteract pandemic-induced economic challenges. This bond-buying initiative remains a crucial element influencing mortgage rates.
However, starting in November 2021, the Fed began winding down its bond purchases, ultimately reaching a halt by March 2022.
From that point until July 2023, the Fed raised the federal funds rate aggressively to combat soaring inflation. While the fed funds rate can sway mortgage rates, it doesn’t directly dictate them; they can move in opposite directions.
Yet, the rapid and significant hikes in 2022 and 2023—with a 5.25 percentage point increase over 16 months—have caused a noticeable upward pressure on mortgage rates over the past two years.
The Fed kept the federal funds rate at its peak level for nearly 14 months starting in July 2023. But on September 18, they announced their first rate cut of 0.50 percentage points, followed by subsequent quarter-point cuts on November 7 and December 18.
However, the Fed’s policy committee recently cautioned that, due to persistent inflation, future rate cuts may be fewer and further between. This tempered outlook for reductions in 2025 pushed 10-year Treasury yields higher, resulting in a rise in mortgage rates.
How We Track Mortgage Rates
The national and state averages mentioned earlier are sourced from the Zillow Mortgage API, assuming an 80% loan-to-value (LTV) ratio (meaning a down payment of at least 20%) and a credit score between 680–739. These rates reflect what borrowers can expect when getting quotes, which may differ from those alluring teaser rates seen in advertisements. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.
