Map: States where mortgage rates increased the most this year
Interest rates come down for first time in 4 years
The Federal Reserve on Sept. 18 cut its benchmark interest rate by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation but also made borrowing painfully expensive for American consumers. Ahmed Riesgo, Insigneo Chief Investment officer, joined LiveNOW from FOX to discuss.
Mortgage interest rates are expected to slowly decrease as the Federal Reserve enacts a series of main interest rate cuts, but it can’t come soon enough for homebuyers in 44 states who saw interest rates continue to rise in the first half of this year.
According to a new analysis from WalletHub, mortgage rates increased in all but six states from the first quarter to the second quarter of this year. It’s worth noting, however, that data used for the analysis was reported before the Federal Reserve cut its main interest rate in September for the first time in more than four years. Rates have generally been declining since July in anticipation of the rate cut.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy decisions. Interest rates vary widely depending on what state you’re in.
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The average rate on a 30-year mortgage is down from 7.22% in May, its 2024 peak. Fed officials also signaled they expect further cuts this year and in 2025 and 2026, which should, over time, lead to lower borrowing costs on mortgages.
Home mortgage rates are posted outside a real estate office after the Federal Reserve interest rates announcement on September 18, 2024 in Los Angeles, California, the same day the Federal Reserve lowered the main interest rate for the first time in
Colorado had the largest increase in mortgage interest rates between the first and second quarters of this year at around 4.9%, but the average mortgage rate in Colorado increased only to 5.7% (ranked 29th for most expensive state for mortgages), the WalletHub analysis found.
Idaho, meanwhile, saw its mortgage rates decrease by 1.12%, the largest rate reduction of any state.
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New Jersey had the nation’s highest average mortgage rate at 7.37%, while Hawaii showed the lowest average mortgage rate at 4.81%.