Thirty-Year Mortgage Rates Hold Near 6.85% Across Multiple States

As of mid-July 2025, 30-year fixed mortgage rates have slightly decreased to around 6.85%, with variations across states such as New York, California, and Pennsylvania offering some of the lowest averages between 6.69% and 6.85%. Despite these modest declines, mortgage rates remain elevated compared to pre-pandemic levels, contributing to ongoing housing affordability challenges, as home prices remain high and mortgage payments continue to strain many potential buyers. The Federal Reserve's steady federal funds rate and persistent inflation around 3% are key factors maintaining upward pressure on borrowing costs, while bond market movements, particularly the 10-year Treasury yield, also heavily influence rate fluctuations. Adjustable Rate Mortgages (ARMs), like the 5-year ARM, saw a slight dip to 7.84%, but borrowers should weigh the risks given potential future rate changes. Additionally, recent tariff announcements by the Trump administration prompted a drop in mortgage rates through bond market reactions; however, affordability remains a barrier with approximately 70% of U.S. households unable to afford median-priced homes. Overall, market watchers anticipate that Federal Reserve policy decisions and inflation trends will continue to shape mortgage rates in the coming months.