Real Estate News

Source shows states with with highest mortgage interest rates

Published: 21 Feb 2017

Buyers getting into home payments need to understand the conditions that affect their own mortgage, which could vary based on local values. A recent article for The Motley Fool used Bankrate.com resources to determine the interest rates for mortgages across the U.S.

According to this source, Kentucky's best interest rate for a 15-year fixed rate mortgage was 3.18 percent, the same as Colorado's. Together, these two states account for the highest rate for that length of mortgage in the entire country.

However, Kentucky just narrowly edged out the Rocky Mountain state with a 3.99 percent best interest rate for 30-year fixed rate mortgages. After these two top contenders, the rest of the states listed are mostly focused in the Midwest, with examples including Indiana, Ohio and Michigan.

This information also makes an interesting parallel with the mortgage application rates in the various states. NerdWallet culled information from the 2015 Home Mortgage Disclosure Act and discovered that Colorado once again placed high, this time boasting the largest amount of residents in the area applying for a mortgage. According to this source, the state had more than 18 people apply for a mortgage loan out of every 1,000 during 2015.

Another apparent similarity between application and interest rates come in is the way that nearby states boasted similar percentages. The state with the second-highest application rate for that year, Utah, directly borders Colorado, and other states with high percentages, such as Arizona, Montana, Wyoming and Nebraska, are also in the same general section of the country.

Reuters recently reported on the national trend of mortgage rates as of the week of Feb. 16, 2017. The 30-year fixed mortgage rate was 4.15 percent. This was only .02 percent lower than the rate of the previous week but .5 percent higher than the rate as of the same time in 2016.