To highlight states where homeowners’ financial burdens are becoming heavier, WalletHub compared all 50 states based on its proprietary user data on mortgage interest rates.
Unfortunately, according to the report, the average mortgage interest rate increased in 44 of the 50 states from the first quarter of 2024 to the second quarter of 2024.
“Buying a home has become increasingly more expensive in recent years. Home prices have skyrocketed and mortgage interest rates have risen significantly from the record lows we saw during the Covid-19 pandemic. The average mortgage interest rate has remained above 6% on 30-year fixed mortgages through 2024, and has only fallen slightly for 15-year fixed loans. The average interest rate also varies widely by state,” the WalletHub report cites.
Chip Lupo, an analyst at the personal finance site, commented: “It’s a difficult time to buy a home, given that home prices have risen astronomically in recent years and the housing shortage makes it difficult to find the right place even if you have the money”.
Cupo added: “Consumers’ difficulties in purchasing a home are exacerbated by the fact that the average mortgage interest rate increased in all but six states between the first and second quarters of 2024. Although mortgage rates “Interest are still a little below the highs we saw last year, they are a long way from the historic lows during the pandemic.”
State (1): Colorado
Average mortgage in the II quarter of 2024: 5.71%
Average change (II quarter vs I quarter 2024): 4.88%
State (2): Missouri
Average mortgage in the II quarter of 2024: 6.30%
Average change (II quarter vs I quarter 2024): 3.12%
State (3): Louisiana
Average mortgage in the II quarter of 2024: 6.84%
Average change (II quarter vs I quarter 2024): 2.72%
State (4): South Carolina
Average mortgage in the II quarter of 2024: 5.55%
Average change (II quarter vs I quarter 2024): 2.52%
State (5): South Dakota
Average mortgage in the II quarter of 2024: 6.28%
Average change (II quarter vs I quarter 2024): 2.49%
On the other hand…
States where mortgage interest rates are rising the least:
State (46): Utah
Average mortgage in the II quarter of 2024: 5.03%
Average change (II quarter vs I quarter 2024): -0.09%
State (47): Montana
Average mortgage in the II quarter of 2024: 5.80%
Average change (II quarter vs I quarter 2024): -0.14%
State (48): Rhode Island
Average mortgage in the II quarter of 2024: 6.25%
Average change (II quarter vs I quarter 2024): -0.45%
State (49): Texas
Average mortgage in the II quarter of 2024: 6.85%
Average change (II quarter vs I quarter 2024): -0.95%
State (50): Idaho
Average mortgage in the II quarter of 2024: 4.96%
Average change (II quarter vs I quarter 2024): -1.12%
For more details of the report and its methodology, go here.
The Colorado case
Colorado had the largest increase in the average mortgage interest rate between the first and second quarters of 2024, around 4.9%. This increase is significantly larger than other states, as only one other state had an increase greater than 3% and most increased less than 2%.
Keep reading:
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· Places homebuyers are moving to in the US.