U.S. Mortgage Rates Show Regional Divergence as National Averages Hold Steady

Mortgage rates across U.S. states exhibited notable disparities on August 1, 2025, with an 18-basis-point spread between the most and least expensive regions. New Jersey, New York, and California led with the lowest 30-year fixed rates at 6.78%-6.83%, while West Virginia and Alaska topped the high-end at 6.92%-6.96%.

The variation reflects localized lending dynamics including credit risk profiles, regulatory environments, and lender competition. Regional discrepancies in loan-to-value ratios and average credit scores further compound these differences, creating distinct borrowing climates state-by-state.

Industry observers note that advertised 'teaser rates' often fail to reflect real-world borrowing costs, which are ultimately determined by individual financial circumstances. The national average remained stable despite these regional fluctuations, suggesting macroeconomic forces are currently outweighing local factors in the broader rate environment.