Mortgage interest rate at state level fall strongly and offer relief to selected home buyers
House buyers who are on the sidelines see the federal mortgage interest rates float above 6%, but the good news is – depending on the state in which you live – you may find lower rates.
The current interest rate for a fixed mortgage of 30 years is 6.3% for the week that ends on 25 September, according to Freddie Mac.
The mortgage interest rate decreased in every state from the first to the second quarter of 2025, according to a new own data report from Wallethub.
The decrease in most states was considerable. They were double digits in 40 states, with the highest falls concentrated in the south and midwest, which indicates that the more much sought after coastal and northeastern states do not have to have a sale of geese.
“The rankings suggest that lenders on cheaper housing markets reduce more aggressively to encourage activities”, “Wallethub Analyst Chip Lupo tells REALTOR.COM®.
“For buyers, that means lower monthly payments in areas where houses are already cheaper than in coastal markets, making these regions particularly attractive.”
Why cuts on the mortgage interest are welcome
The historically high national median house price for August was $ 429,990, which led to a “cruel summer” with the market on the right track for one of the worst years for sale in three decades.
Combine high prices with mortgage interest rates far above the rates of 2% to 4% that buyers got used to during the Pandemic era of COVID-19, and people are not inclined to buy.
The average rate on 30-year-old fixed housing loans rose to 6.3% for the week that ended on 25 September, an increase of 6.26% the week before, according to Freddie Mac. These are slightly higher than the percentage of 6.08% during the same period in 2024.
But the state where you shop at home can make a big difference. The interest rates in all states range from approximately 4.4% to 6.9%, according to Wallethub.
The lowest percentage of the country was in Idaho, at 4.35%; The highest was in New Jersey, at 6.85%. However, all 50 states have seen drops.
Although Vermont did not get much lighting, the last arriving in the country with an average mortgage interest rate of 6.73% from the first to the second quarter, Alabama can look forward to it.
The State took the number 1 place with the highest decrease-16.65%-which brought the average percentage to an nearly-strandemic era low of 4.82%, compared to 5.78%in the first quarter.
Combined with Alabama’s UnderMedical Catalog Prize, the state looks attractive for buyers.
Here are the top 10 states with the greatest mortgage interest rate, according to Wallethub:
1. Alabama
Decrease of 16.65%
Average rate: 4.48%
Median home list price: $ 335,000
Although Alabama is now the 10th-hard state with this new decrease, it says too 21st among the States Adding the most mortgage debt, “suggest that although homeowners catch up payments, many also take new financial risks,” the report said.
2. Mississippi
Remove 16.47%
Average rate: 5.35%
Median home list price: $ 295,000
Although he comes in second place, this southern state still has the 25th most expensive rate in the country.
On the other hand, the inhabitants of Mississippi are starting to make up for the payments, where the state is 24th among the States where mortgage -like delinquency Is the most decreasing, “says the report.
Regarding adding mortgage debt, Mississippi is only 39th, which means that “although progress is being made about existing obligations, new loans remain relatively limited,” says the report.
3. Iowa
Remove 16.35%
Average percentage: 5.46%
Median home list price: $ 285,000
Iowa has the third largest decrease in the country, but the total average percentage is still 5.5%, the 21st highest percentage in the US
“Due to the relatively high interest rates of Iowa, it is not surprising that it is only 42nd among the states where the delinquency of the mortgage is the most decreasing,” says the report. Iowans do not include significant new financial risks and rank only 42nd among states that add the most mortgage debt.
4. Indiana
Remove 16.34%
Average percentage: 5.06%
Mediane Home List Prize: $ 299,900
5. Ohio
Remove 15.91%
Average rate: 5.54%
Mediane Home List Prize: $ 289,900
6. Delaware
Remove 15.80%
Average rate: 4.65%
Median home list price: $ 480,000
7. Arkansas
Remove 15.73%
Average rate: 4.98%
Median home list price: $ 305,000
8. New Mexico
Remove 15.18%
Average rate: 5.13%
Median home list price: $ 404,950
9. Louisiana
Remove 14.88%
Average rate: 5.96%
Median home list price: $ 279,000
10. North Carolina
Remove 14.36%
Average rate: 5.02%
Mediane Home List Prize: $ 419,900
