Homebuyers in these American cities get the best mortgage rates

Homebuyers in North Dakota and Alaska got the best mortgage rates in 2023

Source: Construction Coverage analysis of Freddie Mac data | Image credits: Construction Coverage

Interest rates vary geographically due to local market conditions, residents’ financial health, and laws governing lenders. In the US, 62.8% of all residential loans approved in 2023 had an interest rate of less than 7%. However, in some parts of the country, an even higher proportion of home buyers managed to secure a mortgage rate below this figure. At the state level, North Dakota and Alaska had the largest shares of fixed-rate mortgages, with rates below 7% in 2023, at 73.0% and 72.3%, respectively. By comparison, fewer buyers in the South received favorable rates. Only 42.6% of mortgages approved in Mississippi had interest rates below 7% – the lowest in the nation.

Below is an overview of the mortgage rate landscape for more than 380 metropolitan areas and all 50 states. Researchers from Construction Coverage, a website that provides construction software and insurance reviews, analyzed the latest data from the Home Mortgage Disclosure Act 2023. For more detailed information on data sources and calculations, see the Methodology section.