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With the national 30-year fixed mortgage rate still above 6%, homeownership may feel out of reach for many Americans. But September 2025's national figures mask a far more complicated reality.
Across the U.S., average mortgage rates vary widely, with some states closer to 4% while others sit near 7%.
A mix of factors drives these differences. “Local economic conditions, housing supply and demand, average loan size, and competition among lenders are some of the biggest reasons rates can vary from state to state,” Brian Shahwan, vice president and mortgage banker with William Raveis Mortgage, told Realtor.com.
Plus, your rates will be determined by individual factors, like your credit score, and might be affected by the kind of property you're purchasing.
In an effort to make sense of these state-by-state discrepancies, WalletHub sought to determine the states with the highest and lowest rates in the second quarter of 2025.
Continue reading to see which ones made the list.
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Arizona tied for the fourth lowest rates at an average of 4.56%, dropping 13.86% from the previous quarter.
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California also averaged 4.56%, though its decline was smaller than Arizona's, with rates falling 9.42% from the first quarter.
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Utah reported an average mortgage rate of 4.54%, down 11.76% compared to the first quarter.
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Hawaii saw the second lowest average mortgage rates at 4.48%, an 8.87% decrease from the first quarter.
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Idaho recorded the nation’s lowest average mortgage rate at 4.35%, marking a steep 14.24% decline from the first quarter
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New Hampshire rounded out the top five, averaging a 6.37% mortgage rate in Q2 2025, falling 10.36% from Q1.
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Texas held the fourth spot, with a 6.44% average mortgage rate, a drop of 7.71% from the first quarter.
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Connecticut came in third, reporting a 6.48% average mortgage rate in Q2 2025, down 9.30% from Q1.
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Nebraska ranked second highest, with an average mortgage rate of 6.50%, a 14.20% decrease from the previous quarter.
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New Jersey had the highest average mortgage rate in Q2 2025 at 6.85%, down 8.86% from Q1 2025.
