Looking for the lowest rates?
Every home buyer wants the lowest mortgage rate possible.
Just like with property values, location impacts your interest rate and the rate you lock in could cost or save you thousands over the lifetime of your loan. A report from WalletHub shows where rates grew the most and least over the first half of 2024 — with six states actually regressing.
See which states had the highest and lowest mortgage rates for home buyers.
Check your home buying options. Start hereWhere mortgage rates grew the slowest
Affordability (and the lack thereof) has been a roadblock for many would-be home buyers in recent years. Alongside property values, interest rates experienced huge growth that the housing market is still recovering from.
Some places — and time of the year — provide house hunters with cheaper home prices. The same holds true for interest rates, as they and their pace of growth differ from state to state. A report from WalletHub showed how rates varied across the country and ranked all 50 states by the amount they changed between 2024’s first and second quarters.
The data revealed that six states experienced a quarterly decline with Idaho leading the way. The Gem State’s average mortgage rate fell 1.12% from the first quarter to the second. Next came decreases of 0.95% in Texas, 0.45% in Rhode Island, 0.14% in Montana, 0.09% in Utah, and 0.07% in Connecticut.
On the flip side, Colorado had the largest gain, as the average grew 4.88% quarter-over-quarter. Missouri followed with an increase of 3.12%, then came 2.72% in Louisiana, 2.52% in South Carolina, and 2.49% in South Dakota.
As far as the average rates went, Hawaii’s was the lowest in the second quarter at 4.81%. California and Idaho tied for second at 4.96%, ahead of 5.03% in Utah and 5.11% in both Arizona and West Virginia.
New Jersey had the highest average at 7.37%, followed by 7.29% in Nebraska, 7.07% in Kansas, 6.93% in Connecticut, and 6.9% in New Hampshire.
Below are the states ranked by lowest quarterly change in mortgage rates, according to WalletHub:
| Rank | State | % Change in Average Mortgage Rate (Q2 2024 vs. Q1 2024) | Average Mortgage Rate in Q2 2024 | Rank | State | % Change in Average Mortgage Rate (Q2 2024 vs. Q1 2024) | Average Mortgage Rate in Q2 2024 |
| 1 | Idaho | -1.12% | 4.96% | 26 | Illinois | 1.10% | 6.64% |
| 2 | Texas | -0.95% | 6.85% | 27 | Massachusetts | 1.12% | 6.15% |
| 3 | Rhode Island | -0.45% | 6.25% | 28 | New Hampshire | 1.13% | 6.90% |
| 4 | Montana | -0.14% | 5.80% | 29 | Maryland | 1.19% | 6.02% |
| 5 | Utah | -0.09% | 5.03% | 30 | Alabama | 1.29% | 5.60% |
| 6 | Connecticut | -0.07% | 6.93% | 31 | Wisconsin | 1.36% | 5.40% |
| 7 | Alaska | 0.22% | 5.72% | 32 | West Virginia | 1.38% | 5.11% |
| 8 | Pennsylvania | 0.29% | 6.11% | 33 | New Mexico | 1.40% | 5.89% |
| 9 | Nevada | 0.29% | 5.14% | 34 | Mississippi | 1.57% | 6.22% |
| 10 | New Jersey | 0.30% | 7.37% | 35 | Michigan | 1.63% | 5.98% |
| 11 | Minnesota | 0.31% | 6.00% | 36 | Arkansas | 1.68% | 5.68% |
| 12 | Maine | 0.38% | 5.65% | 37 | Nebraska | 1.69% | 7.29% |
| 13 | Georgia | 0.38% | 6.14% | 38 | Wyoming | 1.84% | 5.43% |
| 14 | New York | 0.42% | 6.77% | 39 | Ohio | 1.92% | 6.28% |
| 15 | Arizona | 0.44% | 5.11% | 40 | Kansas | 1.99% | 7.07% |
| 16 | Washington | 0.48% | 5.83% | 41 | Tennessee | 2.22% | 5.44% |
| 17 | Hawaii | 0.55% | 4.81% | 42 | Vermont | 2.26% | 5.70% |
| 18 | Oregon | 0.59% | 5.43% | 43 | North Carolina | 2.31% | 5.70% |
| 19 | Virginia | 0.71% | 5.73% | 44 | Oklahoma | 2.32% | 6.64% |
| 20 | California | 0.84% | 4.96% | 45 | North Dakota | 2.47% | 5.90% |
| 21 | Florida | 0.89% | 6.82% | 46 | South Dakota | 2.49% | 6.28% |
| 22 | Iowa | 0.92% | 6.17% | 47 | South Carolina | 2.52% | 5.55% |
| 23 | Indiana | 0.97% | 5.74% | 48 | Louisiana | 2.72% | 6.84% |
| 24 | Delaware | 1.04% | 5.34% | 49 | Missouri | 3.12% | 6.30% |
| 25 | Kentucky | 1.10% | 5.74% | 50 | Colorado | 4.88% | 5.71% |
Of course, you have ways to reduce the financial burden of home buying. Every state offers assistance programs and there are plenty of first-time home buyer grants. You also have the option to “buy down” your mortgage rate, though that comes with pros and cons.
Advice for home buyers
Home buying affordability can be a challenge in many places, but mortgage rates can vary depending on your state.
Homeownership is how many people accumulate wealth and give themselves a financial cushion. If you’re in the market to buy a house, see what advice experts are giving and talk to a local mortgage lender to get started.
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