The 4 most populous US states also have today’s lowest refinance rates – May 5, 2020

New York, Florida California and Texas were the four U.S. States with the lowest 30-year mortgage rates on Friday. These are also the states with most people, with about 30% of the nation’s population.

Massachusetts, Georgia North Carolina, Illinois Minnesota and Tennessee are the next four states with the lowest refi rate. The ten states with the lowest rates registered an average between 6.97% to 7.11%.

West Virginia, Washington D.C. (Alaska), South Carolina, South Dakota Hawaii North Dakota, Oregon, and West Virginia were the states with highest refinance Friday rates. The 30-year refi rate averages for this group of states ranged between 7.19% and 7.26%.

Mortgage refinance rate varies by state. Different lenders are active in different regions. Rates may be influenced state-level variations of credit score, average loan amount, and regulations. Lenders have different risk management strategies which influence the rates that they offer.

It’s important to compare rates and shop around for the best mortgage, regardless of what type you want.

It is important to note that

The rates we publish won’t compare directly with teaser rates you see advertised online since those rates are cherry-picked as the most attractive vs. the averages you see here. Teaser rates may involve paying points in advance or may be based on a hypothetical borrower with an ultra-high credit score or for a smaller-than-typical loan. The rate that you will receive is based on factors such as your credit score and income.

National Mortgage Refinance rate Averages

For the last week, rates for 30-year mortgage refinances have been fluctuating in a modest way. The national rate average shot up 11 basis point to 7.14% on Friday. In early April, 30-year refi rates surged a dramatic 40 basis points in a week to notch a peak of 7.31%—the highest level since July 2024.

In March, the average 30-year refinance rate fell to 6.71% – its lowest level since 2025. In September, rates dropped to a two year low of 6.01%.

Compare Current Mortgage Interest Rates – Today, May 5, 2025

Calculate monthly payments using our Mortgage Calculator.

What causes mortgage rates to rise or fall?

Mortgage rates are determined through a complex interplay of macroeconomic factors and industry factors such as:

• The level and direction in the bond market, especially the 10-year Treasury yields
• The Federal Reserve’s current policy on monetary policy. This includes bond purchases and government-backed mortgages.
• Mortgage lenders compete with each other for different loan types.

Because any number of these can cause fluctuations simultaneously, it's generally difficult to attribute any change to any one factor.

Macroeconomic forces kept the mortgage market at a relatively low level for most of 2021. The Federal Reserve bought billions of dollars’ worth of bonds to respond to the economic pressures caused by the pandemic. This bond-buying program is a major influencer on mortgage rates.

Starting in November 2021 the Fed will begin reducing its bond purchases, making monthly reductions of a significant amount until reaching net zero by March 2022.

Fed aggressively increased the federal funds rate between July 2023 and then to combat the inflationary levels that have been in place for decades. While the fed fund rate can affect mortgage rates, it does not do so directly. The Fed Funds Rate and mortgage rates can even move in opposite directions.

But given the historic speed and magnitude of the Fed's 2022 and 2023 rate increases—raising the benchmark rate 5.25 percentage points over 16 months—even the indirect influence of the fed funds rate has resulted in a dramatic upward impact on mortgage rates over the last two years.

The Fed kept the federal funds rate at a peak level for nearly 14 months, starting in July 2023. In September, the Fed announced a rate cut of 0.50 percent, followed by a quarter-point cut in November and December.

For its first meeting of the new year, however, the Fed opted to hold rates steady—and it’s possible the central bank may not make another rate cut for months. Eight rate-setting meetings are scheduled each year, so we could see several rate-hold announcements by 2025.

How We Track Mortgage Interest Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a loan-to-value (LTV) ratio of 80% (i.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates are what borrowers will receive when they receive quotes from lenders, based on the qualifications of the borrower. These rates can differ from teaser rate advertisements. © Zillow, Inc., 2025. The Zillow Terms and Conditions of Use apply.

Article Sources Investopedia requires that writers use primary sources in order to support their work. White papers, government statistics, original reporting and interviews with industry professionals are all examples. We also use original research from other reputable publications when appropriate. Our website contains more information about the standards that we use to produce accurate, unbiased content. Editorial policy

1. United States Census Bureau. "U.S. and World Population Clock."

2. Congressional Research Service "Federal Reserve: Tapering of Asset Purchases," Page 1.

3. Federal Reserve Board. “Summary Economic Projections for March 19, 2025,” page 4.