Mortgage Rates by State: Live Comparison (2026)
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Mortgage Rates by State: Live Comparison
Mortgage rates vary by state more than most people realize — up to 0.50% difference between the cheapest and most expensive states. On a $400,000 mortgage, that 0.50% costs or saves $40,000 over 30 years. Here’s where rates stand and why they differ.
Current Average Rates by State (March 2026)
Note: Rates change daily. These are indicative averages for a 30-year fixed, 740+ credit score, 20% down.
States with Lowest Average Rates
| State | 30-Year Fixed | 15-Year Fixed | Why Lower |
|---|---|---|---|
| California | 6.45% | 5.65% | High competition among lenders, large market |
| Washington | 6.48% | 5.68% | Tech sector demand drives lender competition |
| Colorado | 6.50% | 5.70% | Strong buyer market, many lender options |
| Virginia | 6.50% | 5.70% | Government/military market, VA loan competition |
| Texas | 6.52% | 5.72% | Large market, strong lender competition |
States with Highest Average Rates
| State | 30-Year Fixed | 15-Year Fixed | Why Higher |
|---|---|---|---|
| New York | 6.95% | 6.15% | High regulatory costs, mortgage recording tax |
| Alaska | 6.90% | 6.10% | Small market, fewer lenders |
| Hawaii | 6.88% | 6.08% | Small market, high property costs |
| West Virginia | 6.85% | 6.05% | Lower competition, rural market |
| Vermont | 6.82% | 6.02% | Small market, fewer lender options |
Why Rates Differ by State
- Lender competition: States with more lenders (CA, TX, FL) have lower rates because lenders compete for your business
- Regulatory costs: State-specific regulations, transfer taxes, and recording fees affect lender costs — passed to borrowers
- Default risk: States with higher foreclosure rates or judicial foreclosure processes (which take longer) carry more lender risk
- Property values: Higher median home prices attract more lenders, increasing competition
- Population density: Rural states have fewer lenders and less competition
How to Get the Best Rate Regardless of State
1. Improve Your Credit Score
| Credit Score | Typical Rate Impact |
|---|---|
| 760+ | Best available rate |
| 700-759 | +0.25% above best |
| 660-699 | +0.50% above best |
| 620-659 | +1.00%+ above best |
A 100-point credit score improvement saves more than moving to a cheaper state.
2. Compare at Least 3-5 Lenders
Freddie Mac research shows borrowers who get 5 quotes save an average of $3,000 over the life of the loan compared to those who only get one. Always get quotes from:
- Your current bank
- A credit union
- An online lender (Better, Rocket, LoanDepot)
- A mortgage broker (shops multiple lenders for you)
3. Consider the Full Cost, Not Just the Rate
- APR vs rate: APR includes fees and points. Compare APRs across lenders for the true cost.
- Points: Paying 1 point (1% of loan amount) typically lowers your rate by 0.25%. Worth it if you’ll stay 5+ years.
- Closing costs: Range from 2-5% of loan amount. Some lenders offer lower rates but higher closing costs — do the breakeven math.
- Lock period: Rate locks are typically 30-60 days. Longer locks may cost slightly more.
4. 30-Year vs 15-Year vs ARM
| Loan Type | Best For |
|---|---|
| 30-year fixed | Certainty, lower monthly payment, invest the difference |
| 15-year fixed | Aggressive payoff, lower total interest, higher monthly payment |
| 5/1 ARM | Planning to move within 5-7 years, comfortable with rate risk |
| 7/1 ARM | Same as 5/1 but with more buffer time |
The 15-year saves significant interest but requires a higher monthly payment. At $400K: 30-year at 6.50% = $2,528/month. 15-year at 5.70% = $3,328/month. Total interest saved with 15-year: $230,000.
Key Takeaways
- Mortgage rates vary up to 0.50% between states — worth knowing but hard to control
- Credit score improvement and lender shopping save more than state differences
- Always compare 3-5 lenders — the savings compound over 15-30 years
- Compare APR (not just rate) to capture the full cost including fees
- Consider 15-year if you can afford it — the interest savings are massive
Next Steps
Mortgage Affordability Calculator to see what you can afford, or Find a Certified Financial Planner Near You for advice on how a mortgage fits your overall plan.
This content is for informational purposes only and does not constitute financial advice. Consult a licensed financial professional before making financial decisions.