Home Buying

Mortgage rates: Which New England state saw the biggest jump?

Two in the region have some of the highest average costs in the country.

Which New England state has the highest mortgage rates? It's not Massachusetts. Adobe Stock

October 17, 2024

3 minutes to read

Vermont landed in the top 10, and Rhode Island and Connecticut were in the bottom 10 in a WalletHub analysis of mortgage rate increases.

The personal finance website looked at mortgage rate increases for the first two quarters of this year and ranked the states in a report it released Oct. 3. The analysis was based on proprietary user data.

The report found that the average mortgage rate increased in 44 of the 50 states from the first quarter to the second. “Although interest rates are still down a bit from the highs we saw last year, they’re a far cry from the historic lows during the pandemic,” Chip Lupo, a WalletHub analyst, said in the report.

So how did Massachusetts fare?

The Bay State, which has some of the highest home prices in the country, landed in the middle of the pack, at No. 24. The average mortgage interest rate for the state stood at 6.15 percent and rose 1.12 percent between the first and second quarters.

“Massachusetts ranks in the middle of our study primarily because of its diverse economy, which includes strong sectors such as education and health care, which helps buffer against fluctuations in mortgage interest rates,” Lupo wrote.

Here’s how all of the New England states fared:

RANK	STATE	AVE. RATE Q2 2024	% CHANGE FROM Q1 TO Q2
9.	Vermont	5.70%	2.26%
23.	New Hampshire	6.90%	1.13%
24.	Massachusetts	6.15%	1.12%
39.	Maine	5.65%	0.38%
45.	Connecticut	6.93%	-0.07%
48.	Rhode Island	6.25%	-0.45%

Source: WalletHub

Connecticut and Rhode Island were the only New England states that saw a decrease in the average mortgage rate.

Lupo said mortgage rates are influenced by factors such as economic conditions, inflation, Federal Reserve policies, bond market yields, borrower credit risk, and the type and term of the loan. New England’s economic diversity, housing markets, and income levels contribute to the varying effects of interest rate fluctuations, he said.

“The changes in Connecticut and Rhode Island may be attributed to a slowdown in the housing market, which might reduce demand for mortgages,” Lupo said, adding that an increased competition among lenders can also drive rates lower.

Where did mortgage rates increase the most? Colorado. They are high a mile high, which recorded a 4.88 percent jump between the first and second quarters.

“Colorado already ranks 13th among the states where mortgage delinquency is increasing the most and 18th among the states adding the most mortgage debt, so increasing interest rates may exacerbate this problem in the future,” according to the report.

Here are the top 10 states for mortgage rate increases:

RANK	STATE	AVE. RATE Q2 2024	% CHANGE FROM Q1 TO Q2
1.	Colorado	5.71%	4.88%
2.	Missouri	6.30%	3.12%
3.	Louisiana	6.84%	2.72%
4.	South Carolina	5.55%	2.52%
5.	South Dakota	6.28%	2.49%
6.	North Dakota	5.90%	2.47%
7.	Oklahoma	6.64%	2.32%
8.	North Carolina	5.70%	2.31%
9.	Vermont	5.70%	2.26%
10.	Tennessee	5.44%	2.22%

Source: WalletHub

Here are the top 10 states for mortgage rate decreases:

RANK	STATE	AVE. RATE Q2 2024	% CHANGE FROM Q1 TO Q2
50.	Idaho	4.96%	-1.12%
49.	Texas	6.85%	-0.95%
48.	Rhode Island	6.25%	-0.45%
47.	Montana	5.80%	-0.14%
46.	Utah	5.03%	-0.09%
45.	Connecticut	6.93%	-0.07%
44.	Alaska	5.72%	0.22%
43.	Pennsylvania	6.11%	0.29%
42.	Nevada	5.14%	0.29%
41.	New Jersey	7.37%	0.30%

Source: WalletHub

Mortgage rate increases are one thing; the overall average mortgage rate for a state can mean the difference between an affordable home and out of reach. So, which state had the lowest mortgage rates earlier this year?

RANK	STATE	AVE. RATE Q2 2024
1.	Hawaii	4.81%
2.	Idaho	4.96%
3.	California	4.96%
4.	Utah	5.03%
5.	Arizona	5.11%
6.	West Virginia	5.11%
7.	Nevada	5.14%
8.	Delaware	5.34%
9.	Wisconsin	5.40%
10.	Oregon	5.43%
11.	Wyoming	5.43%
12.	Tennessee	5.44%
13.	South Carolina	5.55%
14.	Alabama	5.60%
15.	Maine	5.65%
16.	Arkansas	5.68%
17.	Vermont	5.70%
18.	North Carolina	5.70%
19.	Colorado	5.71%
20.	Alaska	5.72%
21.	Virginia	5.73%
22.	Indiana	5.74%
23.	Kentucky	5.74%
24.	Montana	5.80%
25.	Washington	5.83%
26.	New Mexico	5.89%
27.	North Dakota	5.90%
28.	Michigan	5.98%
29.	Minnesota	6.00%
30.	Maryland	6.02%
31.	Pennsylvania	6.11%
32.	Georgia	6.14%
33.	Massachusetts	6.15%
34.	Iowa	6.17%
35.	Mississippi	6.22%
36.	Rhode Island	6.25%
37.	Ohio	6.28%
38.	South Dakota	6.28%
39.	Missouri	6.30%
40.	Illinois	6.64%
41.	Oklahoma	6.64%
42.	New York	6.77%
43.	Florida	6.82%
44.	Louisiana	6.84%
45.	Texas	6.85%
46.	New Hampshire	6.90%
47.	Connecticut	6.93%
48.	Kansas	7.07%
49.	Nebraska	7.29%
50.	New Jersey	7.37%

Source: WalletHub

Based on these 30-year fixed mortgage rates, the monthly payment on a home priced at $500,000 in the New England states with 20 percent down ($100,000) would mean a monthly payment of :

STATE	AVE. RATE Q2 2024	MONTHLY MORTGAGE PAYMENT	AVE. HOME VALUE	CHANGE IN AVE. HOME VALUE YEAR OVER YEAR
Connecticut	6.93%	$2,642	$408,201	7.7%
Maine	5.65%	$2,309	$405,170	4.1%
Massachusetts	6.15%	$2,437	$627,596	6.1%
New Hampshire	6.90%	$2,634	$479,752	6.5%
Rhode Island	6.25%	$2,463	$470,378	7.3%
Vermont	5.70%	$2,322	$395,523	1.7%