The Average American Can't Afford a House in 99% of the U.S. — Here's a State-By-State Breakdown of the Mortgage Rates That Tip the Scale A new report from global business services company Flatworld Solutions reveals the disparity across the country.
By Amanda Breen Edited by Jessica Thomas
Key Takeaways
- At 7.2%, mortgage rates have nearly doubled over the past four years.
- Buying a home in a state with high mortgage rates could mean an interest difference of tens of thousands of dollars.
Mortgage rates are nearly double what they were four years ago at about 7.2%, which means a 30-40% rise in housing costs, Yahoo Finance reported.
Homeownership is increasingly out of reach for many people in the U.S. — "unaffordable" in 99% of the country for the average American, per CBS News — but where would-be buyers are considering real estate can significantly impact their prospects.
Purchasing a home in a state with high mortgage rates versus one in a state with lower rates could mean an interest difference of tens of thousands of dollars over a decades-long loan, and a new report from global business services company Flatworld Solutions breaks down the disparity across the country.
In examining the average mortgage rate by state to buy a $417,700 house with a 10% down payment, Flatworld Solutions found that just four U.S. states offer interest rates below 7.7%: Texas led with 7.55%, followed by Florida (7.63%), Georgia (7.63%) and North Carolina (7.66%).
Some of the states with the highest mortgage rate at 7.88% include New York, Oregon and Arkansas.
Related: In Just 3 Words, Kevin O'Leary Offers a Grim Outlook on Interest Rates and Inflation
Read on for the complete list of U.S. states, plus the District of Columbia, ranked from lowest to highest mortgage rates:
1. Texas | 7.550 |
2. Florida | 7.625 |
3. Georgia | 7.625 |
4. North Carolina | 7.662 |
5. Kentucky | 7.700 |
6. New Jersey | 7.700 |
7. Tennessee | 7.700 |
8. Alabama | 7.750 |
9. Illinois | 7.750 |
10. Maryland | 7.750 |
11. Michigan | 7.750 |
12. Nevada | 7.750 |
13. Arizona | 7.750 |
14. Oklahoma | 7.750 |
15. Pennsylvania | 7.750 |
16. South Carolina | 7.750 |
17. Virginia | 7.750 |
18. West Virginia | 7.750 |
19. California | 7.750 |
20. Colorado | 7.750 |
21. Delaware | 7.750 |
22. District of Columbia | 7.750 |
23. Louisiana | 7.813 |
24. Alaska | 7.813 |
25. Hawaii | 7.875 |
26. Idaho | 7.875 |
27. Indiana | 7.875 |
28. Iowa | 7.875 |
29. Kansas | 7.875 |
30. Maine | 7.875 |
31. Massachusetts | 7.875 |
32. Minnesota | 7.875 |
33. Mississippi | 7.875 |
34. Missouri | 7.875 |
35. Montana | 7.875 |
36. Nebraska | 7.875 |
37. New Hampshire | 7.875 |
38. New Mexico | 7.875 |
39. New York | 7.875 |
40. North Dakota | 7.875 |
41. Ohio | 7.875 |
42. Oregon | 7.875 |
43. Arkansas | 7.875 |
44. Rhode Island | 7.875 |
45. South Dakota | 7.875 |
46. Utah | 7.875 |
47. Vermont | 7.875 |
48. Washington | 7.875 |
49. Wisconsin | 7.875 |
50. Wyoming | 7.875 |
51. Connecticut | 7.875 |
