News & Trending Mortgage & Loans News

Homebuyers in These 15 States Get the Best Mortgage Rates

You may think the average mortgage rate applies to all places, but a recent study shows homebuyers in some states get better rates than others.

man signing documents with fountain pen
Updated Nov. 14, 2024
Fact checked

We receive compensation from the products and services mentioned in this story, but the opinions are the author's own. Compensation may impact where offers appear. We have not included all available products or offers. Learn more about how we make money and our editorial policies.

If you’re in the market for a home, you know there have been challenges the past couple of years. Lack of inventory and high mortgage interest rates are two of the biggest obstacles for homebuyers. And everyone wants a low mortgage rate to help them pay off the loan.

While the average mortgage rate is often cited, rates actually vary by state and city. Construction Coverage determined which states had the best rates by analyzing data from the Federal Financial Institutions Examination Council’s 2023 Home Mortgage Disclosure Act. The study was done using the percentage of fixed-rate mortgage holders whose rate is less than 7% as of 2023.

You may be surprised which states had the best rates.

If you’re over 50, take advantage of massive discounts and financial resources

Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.

How to become a member today:

  • Go here, select your free gift, and click “Join Today”
  • Create your account (important!) by answering a few simple questions
  • Start enjoying your discounts and perks!

Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.

Become an AARP member now

Utah

SeanPavonePhoto/Adobe salt lake city in utah

Utah grabbed the No. 15 slot of states where homebuyers can get the best mortgage rates. For Utah homebuyers, 65% were able to get a mortgage at less than 7%.

Minnesota

f11photo/Adobe Minneapolis downtown skyline Minnesota

In the study, Minnesota finished just ahead of Utah with 65.1% of fixed-rate mortgage holders having a rate less than 7%. For the overall housing market in Minnesota, the home value is about $340,000, up about 1.3% over the past year. Home prices have generally been on the rise in Minnesota.

California

Luciano Mortula-LGM/Adobe golden gate san francisco california

You may be surprised to see California on the list where homebuyers can get the best mortgage rates, especially if you live outside of the state.

California is known for having some very expensive housing markets. However, according to the study, 65.2% of fixed-rate mortgage holders had a rate less than 7%.

Resolve $10,000 or more of your debt

Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.

National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1

How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.

Try it

Arizona

TomR/Adobe sonoran desert in scottsdale arizone

Keep in mind that interest rates vary according to region because of things like local market conditions, laws, and the financial health of people living there.

Arizona was found to be among the best states for mortgage rates. Here, 65.5% of fixed-rate mortgage holders had a rate less than 7%.

Pennsylvania

andreykr/Adobe philadelphia skyline at night

Here’s another state to consider for good mortgage rates. The study showed Pennsylvania had 65.6% of fixed-rate mortgage holders seeing a rate less than 7%.

You may want to look at Pittsburgh when checking out the state and rates. It finished among the large metros with the best mortgage rates.

Washington

David Gn/Adobe mount rainier over tacoma city

The study found Washington had about the same share of fixed-rate mortgages with rates below 7% as Pennsylvania.

Washington may not have the most affordable overall housing market, however. The average home value is above $600,000, up about 3.7% over the past year, and a home goes to “pending” in around 10 days.

Maryland

SeanPavonePhoto/Adobe baltimore maryland usa skyline

Per the study, Maryland had nearly 66% of fixed-rate mortgages with rates below 7%. Again, you may not expect to see Maryland on a list of places where you can get good deals on housing.

The state has housing prices about 44% higher than the national average. The cost of living is 16% higher than the national average.

Nevada

SeanPavonePhoto/Adobe Las Vegas Nevada Skyline during day

We head back out west for the next state on the list of places to get the best mortgage rates. Here 66.5% of homebuyers got a rate below 7%. Further, Reno was among the midsize metros with the best mortgage rates.

Nevada may be among the more affordable states on our list. The average home value is about $445,000, up around 6% over the past year.

New York

TTstudio/Adobe New York City skyline during day

There’s good news from the study if you’re considering buying a home in New York. The state ranked seventh among the top places to get the best mortgage rates.

That’s not all. Some metro areas also ranked highly for their rates. Along with New York City, Ithaca and Elmira also made the lists for metros with the best mortgage rates.

Earn cash back on everyday purchases with this rare account

Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2

With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!

This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.

Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.

Apply for a Discover Cashback Checking account today

Connecticut

f11photo/Adobe downtown hartford city

If New York makes the list, you might not be surprised to see Connecticut just above it, with 68% of buyers getting a rate less than 7%.

Hartford also made the list of large metros with the best mortgage rates. Home values and prices have been rising quite quickly in Connecticut. In fact, the average home value is about $412,000, up about 9.7% over the past year.

Iowa

f11photo/Adobe Des Moines Iowa skyline in USA

The middle of the country brings us our next state where homebuyers can get the best mortgage rates. About 68.1% of fixed-rate mortgage holders had a rate below 7%.

You may already be considering Iowa as an overall affordable option. The cost of living is about 6% below the national average, with housing 19% lower.

Colorado

Sean/Adobe sunrise at the Garden of the Gods in Colorado Springs

There are several metro areas to check out in Colorado, another state that ranked highly (No. 4) on the list of places where homebuyers can get the best mortgage rates.

First, Denver was near the top of the list of large metros with the best mortgage rates. Fort Collins, Colorado Springs, Greeley, and Boulder also ranked highly for having good mortgage rates.

Massachusetts

SeanPavonePhoto/Adobe Boston Massachusetts skyline during day time

When it comes to states where homebuyers can get the best mortgage rates, Massachusetts was ranked among the top three. About 69.8% of fixed-rate mortgage holders had rates below 7%.

Keep in mind, the total cost of living in Massachusetts is around 46% higher than the national average, with housing 108% higher than the national average.

Alaska

SCStock/Adobe colorful meadows surrounded with green gardens in juneau alaska during day time

We head north of the Lower 48 for our next stop. Alaska was among the top two states where homebuyers can get the best mortgage rates. About 72.3% of fixed-rate mortgage holders saw rates below 7%. The downside of Alaska is tha, the cost of living is 31% higher than the national average.

North Dakota

Zak Zeinert/Adobe man hiking on the mountains of north dakota

Are you surprised to see North Dakota at the top of the list for states where you can get the best mortgage rates? About 73% of fixed-rate mortgage holders saw rates below 7%.

The good news doesn’t stop there. North Dakota has a cost of living around 6% below the national average, with housing 16% lower.

Bottom Line

Krakenimages.com/Adobe Couple applying for mortgage

If you’re looking to buy a home and searching for the best mortgage rates, there are options across the country. From North Dakota to Pennsylvania, you can find fixed-rate mortgage options with rates below 7%. The best money move a homeowner can make is to get a low fixed-rate mortgage.

If you’re feeling frustrated, keep this in mind: Many prospective buyers are being forced to search for deals amid a combination of high home prices and expensive financing.

Lucrative, Flat-Rate Cash Rewards

5.0
info

Wells Fargo Active Cash® Card

Current Offer

$200 cash rewards bonus after spending $500 in purchases in the first 3 months

Annual Fee

$0

Rewards Rate

Earn unlimited 2% cash rewards on purchases

Benefits and Drawbacks
Card Details


Author Details

Chris Adam

Chris Adam is a seasoned personal finance, technology, and general assignment journalist. As a broadcast and digital journalist, he's served as a leader in network and local newsrooms. Some of his favorite topics to write about include investing, shopping, retail, and stocks.