Current Refinance Interest Rates in Various States - June 11, 2025
A Fresher Perspective on Mortgage Refinance Rates
Craving some financial insight? Let's dive into the world of mortgage refinance rates and uncover the states that are ruling the game this week! The ultra-affordable nine states turning heads with 30-year refinance rates under 7.1% are none other than California, New York, Connecticut, Florida, Texas, Washington, Oregon, Minnesota, and Virginia.
On the flip side, the nine states saddled with the heaviest refinance rates this week are Alaska, Missouri, Montana, North Dakota, Rhode Island, Wyoming, South Dakota, Hawaii, and Oklahoma, where rates are ranging between 7.21% and 7.25%.
Mortgage refinance rates in different states can vary quite a bit. Why? The reasons are as vast as the United States itself! Lenders operate in various regions, and the rates can be swayed by factors such as regional differences in credit scores, average loan size, and regulations. Plus, each lender adopts its own risk management strategies that influence the rates offered.
In the competitive mortgage market, it’s always wise to explore your top mortgage options and regularly compare rates, regardless of the type of home loan you're eyeing.
National Mortgage Refinance Rate Averages
Guess who's enjoying a two-day slide? It's the 30-year refinance mortgages! They've dropped by 5 basis points, bringing the Tuesday average to 7.14%—a much-appreciated reduction compared to the 7.32% peak seen in May, which marked a 10-month high.
Remember the good old days back in March when rates slid to a 6.71% average, their most affordable levels since 2025? Or how about September 2021, when 30-year refinance rates reached a two-year low of 6.01%?
Beware of Teaser Rates
The rates we provide won't mirror the enticing teaser rates you may spot online because those rates are cherry-picked to show the most attractive ones. Teaser rates often come with upfront costs like points or may be based on a fictitious borrower with an exceptional credit score or a smaller-than-common loan amount.
The final rate you'll secure will depend on factors such as your credit score, income, and more. So, it's bound to deviate from the averages we present.
Compare Today's Mortgage Rates - June 12, 2025
Eager to see if that dream home truly fits within your budget? Our Mortgage Calculator is here to help you crunch the numbers! Simply plug in your home price, down payment, preferred loan term, expected property tax and insurance costs, and the hoped-for interest rate, and we'll help you estimate your monthly payment.
The final figure depends on several factors, including your home's price, down payment, loan term, property taxes, homeowners insurance, and the interest rate associated with your loan (which is heavily influenced by your credit score).
Curious? Calculate your payment now ↔ More Info
What Causes Mortgage Rates to Rise or Fall?
Mortgage rates are affected by a complicated interplay of macroeconomic and industry factors, including:
- Market Conditions and Economic Factors:
- Inflation: Higher inflation can push mortgage rates upward due to lenders seeking to safeguard their returns' purchasing power.
- Federal Reserve Policies: The federal funds rate, controlled by the Federal Reserve, can impact mortgage rates significantly. For example, rate hikes intended to combat inflation often result in higher mortgage rates2.
- Global Economic Trends: Economic stability or instability worldwide can influence investor confidence, potentially affecting demand for mortgage-backed securities and therefore mortgage rates.
- Financial Market Dynamics:
- U.S. Treasury Bond Market: U.S. Treasury bond yields serve as a benchmark for mortgage rates. When Treasury yields climb, mortgage rates often follow as investors demand higher returns to compensate for increased risk4.
- Mortgage-Backed Securities (MBS): The demand for MBS affects mortgage rates. Approximately 70% of U.S. mortgages are bundled into these securities, and changes in demand can impact rates1.
- Borrower-Specific Factors:
- Credit Score: A stronger credit score generally leads to lower mortgage rates since lenders perceive less risk1.
- Down Payment: Larger down payments can help secure lower mortgage rates by reducing the lender's risk1.
- Debt-to-Income Ratio: A lower debt-to-income ratio can bolster a borrower's profile and potentially result in more favorable rates1.
- Lender and Loan-Specific Factors:
- Loan Term and Type: Longer loan terms usually come with higher rates than shorter terms. Adjustable-rate loans often offer lower initial rates compared to fixed-rate loans5.
- Property Type: Primary residences generally have lower rates than investment properties5.
- Lender Fees: These can vary between lenders and impact the final mortgage rate2.
- Government Policies and Guarantees:
- Guarantee Fees from Government-Sponsored Enterprises (GSEs): Fannie Mae, Freddie Mac, and Ginnie Mae charge fees to guarantee mortgages against default, which are incorporated into mortgage rates. These fees can be influenced by borrower-specific factors like credit score and down payment1.
These factors interact to create the complex landscape that shape the rise and fall of mortgage rates.
- In the realm of personal-finance and real-estate investments, some are questioning the potential implications of the Federal Reserve's future policies on mortgage rates, considering the impact such policies have had in the past.
- As the digital finance sector evolves, there is growing interest in the role of tokens and Initial Coin Offerings (ICOs) in the mortgage industry—wondering if they could bring about a more efficient and inclusive lending process.
- With the rise of decentralized finance, there are calls for greater regulation to safeguard personal-finance matters, such as mortgage investments, to ensure fairness, transparency, and consumer protection within the fast-paced digital token market.
