This map compares average mortgage rates by state Article originally posted on HERE on July 8, 2025 One of the most stressful parts of buying or refinancing a home is locking in a mortgage rate. Home loan rates vary depending on various factors, including your credit score, down payment size, and — this is a big one — where you live. At the time of publication, the national average 30-year fixed-rate mortgage sits at 6.81%, according to Zillow. That figure could be slightly higher or lower, though. It depends on which state you live in and whether you want to buy a house or refinance your mortgage. Mortgage rates by state Here’s a look at the current average mortgage rates by state for 30-year fixed-rate home loans. At the time of writing, the average rate ranged from 6.56% (Hawaii and Mississippi) to 7.12% (Alaska). Mortgage refinance rates Refinance rates by state also vary, and they’re often (but not always) a bit higher than mortgage rates on home purchases. For example, a mortgage lender may advertise higher refinance rates than mortgage purchase rates. But if you have improved your credit score, lowered your debt-to-income ratio (DTI), and accumulated a fair amount of equity since buying your home, you could actually land a lower interest rate when refinancing. Why mortgage interest rates vary by state Local competition Steep competition in the housing market benefits sellers and mortgage lenders. Home buyers, however, suffer from fewer houses to choose from and higher mortgage rates if their options are limited. If there are several mortgage lenders in your area, you could snag a better rate by forcing them to compete for your business. Try applying for preapproval with several companies to find out which one offers the best interest rate, fees, and types of mortgage loans. Operating costs Some mortgage lenders operate solely online, which costs them less money. They may pass the cost savings on to consumers. Others have physical locations to serve borrowers. Either way, the latter results in increased operating costs, which lenders sometimes recoup by charging higher interest rates. In states where the cost of doing business is higher, above-average rates are more common. State laws and regulations The laws in your state, specifically those related to foreclosure, can also impact rates. Expect higher rates in states that require lenders to go through the court system to foreclose on a home, such as Illinois and Delaware. Judicial foreclosure is costly and time-consuming for the mortgage lender. So, lenders generally increase rates to cover the risk. Loan size The more you borrow to purchase a home, the more a mortgage lender stands to make from paid interest. Therefore, it makes sense for states with higher home prices to also charge higher interest rates. Jumbo loans, in particular, are more profitable, and lenders want to make these mortgages as attractive as possible. Smaller mortgage loans are cheaper to process, but lenders sometimes charge more to maintain reasonable profit margins on these mortgages. Basically, if you’re borrowing a particularly large or small amount, you may face a higher mortgage rate. Mortgage and refinance rates by state FAQs How often do mortgage interest rates change? Mortgage rates are constantly changing. They often fluctuate daily, and in some instances, rates will change throughout the day. Consult with your lender to discuss rate lock options so you’ll know when to lock your mortgage rate. How can I get the best mortgage rate in any state? There’s no way to control the mortgage rates set by lenders, but you can position yourself to qualify for the lowest mortgage rate possible. Start by getting your finances in order, which may involve increasing your credit score (if necessary) and reducing your debt load to improve your DTI ratio. It also helps to have ample reserves that exceed the down payment amount. Most importantly, shop around and compare loan quotes before formally applying for a mortgage. What is a good refinance rate? A solid refinance rate is slightly below or similar to the average rate in your state of residence. Compare rate quotes from at least three mortgage refinance lenders before applying for a loan refinance. If the rates are on the high end, consider holding off and improving your credit rating to snag a better deal in the future.