Mortgage rates are decreasing the most in these states, data shows

The Brief

The average mortgage interest rate decreased across all states from Q1 2025 to Q2 2025, and a new study is revealing where interest rates are decreasing most .

While the average mortgage interest rate has stayed above 6% on 30-year fixed mortgages during 2025, the rate varies widely by state.

In order to highlight the states where homeowners' financial burdens are getting lighter, WalletHub compared the 50 states based on its proprietary user data on mortgage interest rates from Q1 2025 to Q2 2025.

Alabama had largest decrease in mortgage rate

By the numbers:

According to the data , Alabama had the largest decrease in the average mortgage interest rate between Q1 2025 and Q2 2025, at around 16.7%.

With this significant decrease, the average mortgage rate in Alaba