While 澳洲幸运5官方开奖结果体彩网:mortgage rates have a direct impact on housing affordability, the states with the highest housing costs aren't necessarily the ones with the highest mortgage rates. Instead, factors like local credit conditions and lender supply can affect mortgage rates, causing some high-cost real estate markets to have low interest rates. Look no further than New York State tꩵo see this dynamic in play.

In August, New York ranked among the five states with the lowest mortgage rates every business day of the month—the only state to do so, according to data from Zillow provided to Investoped✃ia.

For the month of August, the rate on 30-🥂year fixed-rate mortgages in New York averaged 6.14% compared to the nationwide average of 6.39%.

Mortgage Rates Can Impact Your Monthly Payment

The 25 basis points gap between average New York rates and the national average in August might not seem like much, but over the course of a 30-year mortgage, small rate differences can add up substantiallyꦿ.

For example, the average home value in New York was $481,773 in August, according to Zillow’s latest Housing Market Report released last week. With a 20% down payment, the monthly mortgage payment (not including taxes or homeowners insurance) on the average New York home with a 6.14% mortgage rate would be about $2,346. Over 30 years, the total costs of 澳洲幸运5官方开奖结果体彩网:principal and interest would equal around $844,409.

In comparison, if New York rates were the same as the national average of 6.39%, the same home would have a monthly mortgage payment of about $2,408. Over 30 years, that additional $63 per month comes out to over $20,000 in interest costs.

What About Mortgage Rates in Other States?

Some areas of the U.S. face much higher mortgage rates. Washington, D.C., ranked in the top five highest mortgage rates every business day in August, while West Virginia and South Dakota ranked in the top five for the majority of August (21 days♏ and 17 days, respectively).

The average mortgage rates for D.C. and West Virginia in August were 6.52%—the highest average among all state♌s in August—while South Dakota had an average rate of 6.48%.

How ꦕDo New York 💙Housing Prices Compare to Other States?

Although New York had below-average mortgage rates in August, it's important to still consider housing prices when assessing real estate markets. New York's average home value of $481,773 ranked 10th in the nation in August for states with the highest housing prices—11th if you count Washington, D.C.—according to Zillow.

That's over $100,000 more than the national average, so homebuyers need to weigh that against other factors like mortgage rates.

In South Dakota, for example, where in August the average mortgage rate was 6.48%—34 basis points higher than New York’s average of 6.14%— and the average home value was $307,125, the monthly principal-and-interest mortgage payment would still be less than in New York, due to the lower housing price.

Specifically, homebuyers paying the ⛎average home value price and average mortgage rate with a 20% down payment in South Dakota could expect a monthly mortgage cost of about $1,550 vs. $2,346 in New York, not including other costs like home insurance and property taxes.

What Do New York's Low Mortgage Rates Mean for Homebuyers?

Although housing costs remain relatively high in New York, below-average mortgage rates help offset some of the price gap. Above-average incomes in New York could also help offset higher housing prices while buyers benefit from low🔯er rates. 

Also, if you're comparing similarly priced homes in different states, low mortgage rates could tip the scales toward New York. In other words, all things being equal, lower mortgage rates save homebuyers money.

With the Federal Reserve widely expected to 澳洲幸运5官方开奖结果体彩网:lower the federal funds rate after its meeting tomorrow, mortgage rates across the country are 澳洲幸运5官方开奖结果体彩网:already trending lower. The Fed 澳洲幸运5官方开奖结果体彩网:does not directly determine 🌺mortgage rates, b💎ut it’s one of the many factors that can affect what lenders charge their customers.

It remains to be seen exactly what impact that will have on mortgage rates and, as recent data has shown, there can be significant differences by state. In general, though, New Yorkers and the rest of the U.S. will likely see lower mortgage rates soon.

How We Track Mortgage Rates

The national and state averages cited above are provided as is via the Zillow Mortgage API, assuming a 澳洲幸运5官方开奖结果体彩网:loan-to-value (LTV) ratio of 80% (i📖.e., a down payment of at least 20%) and an applicant credit score in the 680–739 range. The resulting rates represent what borrowers should expect when receiving quotes from lenders based on their qualifications, which may vary from advertised teaser rates. © Zillow, Inc., 2024. Use is subject to the Zillow Terms of Use.