The states with the cheapest 30-year refinancing rate on Friday were New York, California, Washington, Georgia, North Carolina, Arizona, Florida, Indiana and Texas. These nine states have registered refi on average between 6.59% and 7.01%.
Meanwhile, the states with the most expensive 30-year refinancing rate on Friday were Alaska, West Virginia, Washington, DC, Hawaii, Idaho, South Carolina, Kansas, Nebraska and Rhode Island. These high rate states registered an average of refi between 7.07% and 7.14%.
Mortgage refinance rates vary depending on the state in which they occur. Different lenders operate in different regions, and fees can be affected by state-level fluctuations in credit scores, average loan size, and regulations. Lenders also have a variety of risk management strategies that affect the fees they provide.
Rates vary widely from lender to lender, so it’s always wise to have your best mortgage options and compare rates regularly, regardless of the type of mortgage you’re looking for.
National refinance rate is backed up
After a two-day retreat, the 30-year refinance mortgage returned to 7% territory, earning five basis points on Friday, pushing the average to up to 7.04%.
This remains close to the 6.95% reading the previous week, with the lowest 30-year REFI average since April 4th. However, for homeowners in March, refinancing was more affordable as interest rates plummeted to a 2025 low of 6.71%. Also, last September, the Refi rate in 2010 fell to its lowest level in two years, at 6.01%.
Lenders’ best mortgage rates national average lending rates average 30 years fixed 7.04% FHA 30 years fixed 7.44% 15 years fixed 5.94% Jumbo 30 years fixed Zillow mortgage API 7.06% 5/6 ARM 7.57%
Pay attention to the teaser rate
The fees we publish are average and don’t compare directly to the teaser rates that are often advertised online. These fees are usually cherry picked to be the most attractive and may involve prepaid points or a typical loan based on a virtual borrower with a high credit score or a typical loan. The actual rate you protect may differ from the average shown here as it depends on factors such as your credit score, income, and so on.
Use a mortgage calculator to calculate monthly payments for various loan scenarios.
What causes mortgage interest rates to rise or fall?
Mortgage fees are affected by a combination of macroeconomic factors and industry dynamics.
The level and direction of the bond market, especially the 10-year Treasury, will generate the Federal Reserve financial policy, particularly in regards to the competition for government support for mortgage lenders and government support over bond purchases and financing across various loan types.
All of these factors can fluctuate simultaneously, making it difficult to pinpoint the exact cause of rate changes.
In 2021, macroeconomic conditions kept mortgage rates relatively low, and the Federal Reserve purchased billions of dollars in bonds to combat the economic impact of the pandemic. This bond buying policy was a key driver of mortgage fees in the interim.
However, starting in November 2021, the Fed began to reduce bond purchases and tapered to zero in March 2022. Then, between 2022 and 2023, the Fed was actively raising its federal fund rate to combat decades of inflation.
The Fed’s funding rate can affect mortgage rates, but it does not do so directly. In fact, Fed funds and mortgage rates can move in the opposite direction. However, given the historic speed and magnitude of the Fed’s 2022 and 2023 rates, acquiring a 16-month benchmark rate of 5.25% points over this period saw a surge in the commortgage rate, reflecting the ripple effect of the Fed’s dramatic campaign.
The Fed has maintained its federal funding rate for almost 14 months, starting in July 2023. However, last September, the central bank announced top-class cuts of 0.50 percentage points, continuing its quarterly cuts in November and December.
In 2025 so far, the Fed has maintained a stable fee throughout its four meetings, with no further cuts likely to occur until September. The Fed’s quarterly forecast, released in mid-June, shows the median forecast for the then-central bankers led by the Fed’s funding rate, suggesting that the remaining four meetings could include additional charges.
How to track mortgage fees
The above national and state averages are provided via the Zillow Mortgage API. This assumes a ratio of 80% (i.e., down payment of at least 20%) to applicant credit score ratio (LTV) in the range of 680-739. The resulting rate represents what you expect when a lender receives estimates from a lender based on their eligibility. ©Zillow, Inc., 2025. Use is subject to the Zillow Terms of Use.
