Editor's Note: This story originally appeared on Construction Coverage.
Interest rates have become a central concern for both homebuyers and policymakers.
The Federal Reserve’s ongoing effort to curb inflation has led to higher borrowing costs, with rates staying elevated longer than many analysts anticipated. This shift has made mortgages significantly more expensive, complicating the path to homeownership for many Americans.
While higher interest rates have somewhat cooled the housing market, they have also driven up the cost to finance a home purchase.
As a result, prospective buyers are increasingly caught in a difficult position — facing both elevated home prices and borrowing costs. In this environment, the mortgage rate a buyer can secure has become an important factor in determining housing affordability across different U.S. markets.
Interest rates vary geographically due to local market conditions, the financial health of residents, and laws governing lenders. Across the U.S., 65.1% of all approved home purchase loans had interest rates below 7% in 2024. Yet, the likelihood of securing a more favorable rate differed significantly by location.
Following is a breakdown of the major metro areas with the best home mortgage rates, compiled by researchers at Construction Coverage with the latest data from the Home Mortgage Disclosure Act. For more detailed information, see the methodology section.
15. Dallas-Fort Worth-Arlington, TX
- Share of fixed-rate mortgages with <7.0% rate: 70.4%
- Share of 30-year mortgages with <7.0% rate: 75.7%
- Share of 15-year mortgages with <7.0% rate: 89.9%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $435,000
- Median home sale price (financed with 15-year mortgage): $555,000
14. San Francisco-Oakland-Fremont, CA
- Share of fixed-rate mortgages with <7.0% rate: 70.5%
- Share of 30-year mortgages with <7.0% rate: 73.1%
- Share of 15-year mortgages with <7.0% rate: 93.5%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): +0.125 pp
- Median home sale price (financed with 30-year mortgage): $975,000
- Median home sale price (financed with 15-year mortgage): $995,000
13. Buffalo-Cheektowaga, NY
- Share of fixed-rate mortgages with <7.0% rate: 70.7%
- Share of 30-year mortgages with <7.0% rate: 70.9%
- Share of 15-year mortgages with <7.0% rate: 88.7%
- Median interest rate across all fixed-rate mortgages: 6.750%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $255,000
- Median home sale price (financed with 15-year mortgage): $265,000
12. Charlotte-Concord-Gastonia, NC-SC
- Share of fixed-rate mortgages with <7.0% rate: 70.7%
- Share of 30-year mortgages with <7.0% rate: 73.8%
- Share of 15-year mortgages with <7.0% rate: 93.2%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $425,000
- Median home sale price (financed with 15-year mortgage): $455,000
11. Nashville-Davidson–Murfreesboro-Franklin, TN
- Share of fixed-rate mortgages with <7.0% rate: 71.2%
- Share of 30-year mortgages with <7.0% rate: 74.0%
- Share of 15-year mortgages with <7.0% rate: 93.9%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $465,000
- Median home sale price (financed with 15-year mortgage): $545,000
10. New York-Newark-Jersey City, NY-NJ
- Share of fixed-rate mortgages with <7.0% rate: 71.2%
- Share of 30-year mortgages with <7.0% rate: 74.0%
- Share of 15-year mortgages with <7.0% rate: 95.0%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $655,000
- Median home sale price (financed with 15-year mortgage): $715,000
9. Sacramento-Roseville-Folsom, CA
- Share of fixed-rate mortgages with <7.0% rate: 71.4%
- Share of 30-year mortgages with <7.0% rate: 75.1%
- Share of 15-year mortgages with <7.0% rate: 87.9%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $605,000
- Median home sale price (financed with 15-year mortgage): $675,000
8. Fresno, CA
- Share of fixed-rate mortgages with <7.0% rate: 71.5%
- Share of 30-year mortgages with <7.0% rate: 74.5%
- Share of 15-year mortgages with <7.0% rate: 82.2%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $455,000
- Median home sale price (financed with 15-year mortgage): $465,000
7. Pittsburgh, PA
- Share of fixed-rate mortgages with <7.0% rate: 72.5%
- Share of 30-year mortgages with <7.0% rate: 71.3%
- Share of 15-year mortgages with <7.0% rate: 91.9%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $275,000
- Median home sale price (financed with 15-year mortgage): $335,000
6. Denver-Aurora-Centennial, CO
- Share of fixed-rate mortgages with <7.0% rate: 73.2%
- Share of 30-year mortgages with <7.0% rate: 74.9%
- Share of 15-year mortgages with <7.0% rate: 88.5%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): +0.001 pp
- Median home sale price (financed with 30-year mortgage): $605,000
- Median home sale price (financed with 15-year mortgage): $675,000
5. Hartford-West Hartford-East Hartford, CT
- Share of fixed-rate mortgages with <7.0% rate: 74.1%
- Share of 30-year mortgages with <7.0% rate: 72.4%
- Share of 15-year mortgages with <7.0% rate: 96.2%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $365,000
- Median home sale price (financed with 15-year mortgage): $435,000
4. Raleigh-Cary, NC
- Share of fixed-rate mortgages with <7.0% rate: 74.7%
- Share of 30-year mortgages with <7.0% rate: 76.2%
- Share of 15-year mortgages with <7.0% rate: 93.2%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): +0.125 pp
- Median home sale price (financed with 30-year mortgage): $445,000
- Median home sale price (financed with 15-year mortgage): $495,000
3. Austin-Round Rock-San Marcos, TX
- Share of fixed-rate mortgages with <7.0% rate: 74.7%
- Share of 30-year mortgages with <7.0% rate: 78.3%
- Share of 15-year mortgages with <7.0% rate: 90.3%
- Median interest rate across all fixed-rate mortgages: 6.624%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): +0.125 pp
- Median home sale price (financed with 30-year mortgage): $455,000
- Median home sale price (financed with 15-year mortgage): $555,000
2. Boston-Cambridge-Newton, MA-NH
- Share of fixed-rate mortgages with <7.0% rate: 74.8%
- Share of 30-year mortgages with <7.0% rate: 73.0%
- Share of 15-year mortgages with <7.0% rate: 97.6%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $655,000
- Median home sale price (financed with 15-year mortgage): $695,000
1. Washington-Arlington-Alexandria, DC-VA-MD-WV
- Share of fixed-rate mortgages with <7.0% rate: 75.2%
- Share of 30-year mortgages with <7.0% rate: 77.2%
- Share of 15-year mortgages with <7.0% rate: 90.6%
- Median interest rate across all fixed-rate mortgages: 6.625%
- Change in median interest rate across all fixed-rate mortgages (2023-2024): No change
- Median home sale price (financed with 30-year mortgage): $595,000
- Median home sale price (financed with 15-year mortgage): $675,000
Methodology
To determine the locations where homebuyers get the best mortgage interest rates, researchers at Construction Coverage analyzed the latest data from the Federal Financial Institutions Examination Council’s 2024 Home Mortgage Disclosure Act.
The researchers ranked metros according to the share of all fixed-rate mortgages with less than a 7% interest rate. Only conventional home purchase loans approved in 2024 were included in the analysis. In the event of a tie, the metro with the greater share of 30-year mortgages with less than a 7% interest rate was ranked higher.
Researchers also calculated the share of 15-year mortgages with less than a 7% rate, and the median interest rate across all fixed-rate mortgages, the change in median interest rate across all fixed-rate mortgages (2023–2024), and the median home sale prices for homes financed with 30-year and 15-year mortgages.
To improve relevance, only records with complete data were included in the analysis, and metro areas were grouped based on population size, with large metros defined as 1 million or more.
Additionally, due to data limitations, calculations for metropolitan areas in Connecticut were approximated using county boundaries instead of county equivalent planning regions.
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