Mortgage rates have been rising across much of the US, but not everywhere. The national average for a 30-year mortgage has reached recent highs in recent months. A new WalletHub report found that mortgage rates actually fell in 13 states between the first and second quarters of 2026. This means some homebuyers saw borrowing costs move lower even as rates increased across most of the country.
(Pexel/Representative image) (Pexel)
The 13 states that saw mortgage rates fall were Hawaii, Iowa, Louisiana, Vermont, Rhode Island, West Virginia, Maine, Nevada, Texas, Montana, Wyoming, South Dakota and North Dakota. The WalletHub report compared average mortgage rates in the first and second quarters of 2026, according to USA Today.
Mortgage rates fell in these states
North Dakota recorded the biggest drop among the 13 states. Its average mortgage rate fell by 3.68 percentage points, reaching 5.00% in the second quarter of 2026. South Dakota had the second-biggest decline. Its average mortgage rate dropped by 1.22 percentage points between the first and second quarters, reaching 5.50% in Q2, according to WalletHub.
Wyoming also saw a large decline. Its average mortgage rate fell by 1.07 percentage points, with the Q2 average standing at 4.91%. Montana’s average mortgage rate fell by 0.84 percentage points. The state’s average rate was 5.27% in Q2 2026. Texas saw its average mortgage rate fall by 0.83 percentage points. Its average rate stood at 6.36% in the second quarter, according to WalletHub.
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Nevada recorded a 0.71 percentage-point decline. Its average mortgage rate was 4.68% in Q2 2026. Maine’s average mortgage rate dropped by 0.58 percentage points. The Q2 average was 5.26%. West Virginia saw a 0.46 percentage-point decline. Its average mortgage rate stood at 4.64% in Q2.
Rhode Island’s average mortgage rate fell by 0.29 percentage points. The average rate reached 5.94% in Q2 2026. Vermont saw its average rate drop by 0.23 percentage points. Its Q2 average was 5.41%. Louisiana recorded a 0.21 percentage-point fall. Its average mortgage rate was 5.98% in Q2. Iowa’s average mortgage rate declined by 0.10 percentage points. Its Q2 average stood at 5.66%.
Why did mortgage rates fall?
Hawaii had the smallest decline among the 13 states. Its average mortgage rate fell by 0.04 percentage points, reaching 4.53% in Q2 2026. WalletHub analyst Chip Lupo said the states where rates fell generally had slower housing markets and stronger borrower finances.
Slower housing activity can mean less upward pressure on borrowing costs, while financially stronger borrowers may have better credit and qualify for lower rates, according to Lupo’s analysis cited by USA Today. But most states moved in the opposite direction. Mortgage rates increased in 37 states between Q1 and Q2 2026.
States where mortgage rates rose
Mississippi had the biggest increase. Its average mortgage rate rose by 1.92 percentage points, reaching 5.54% in Q2 2026. Colorado recorded the second-largest increase. Its average mortgage rate rose by 1.60 percentage points to 5.33%. Tennessee’s average mortgage rate increased by 1.57 percentage points. The state’s Q2 average was 4.96%, according to WalletHub.
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Wisconsin saw its average rate rise by 1.23 percentage points to 5.16%. Missouri’s rate increased by 1.14 percentage points to 5.69%. Kansas and North Carolina both saw rates rise by 1.10 percentage points. Kansas had a Q2 average of 6.50%, while North Carolina’s average was 5.21%.
Arkansas saw its average mortgage rate increase by 1.04 percentage points to 5.13%. New Hampshire’s rate rose by 1 percentage point to 6.53%. South Carolina also recorded a notable increase. Its average mortgage rate rose by 0.92 percentage points, reaching 5.02% in Q2.
Should you wait for lower rates?
Experts say buyers should not wait for the perfect mortgage rate before making a decision. Ginger Wilcox, president of Better Homes and Gardens Real Estatesaid she generally does not encourage buyers to make decisions based on trying to perfectly time the market.
Real estate conditions can be very different from one place to another. Wilcox said mortgage rates and home prices could look very different six or 12 months from now, so buyers cannot know exactly what the market will do.
Instead, Wilcox recommends focusing on affordability. Buyers should choose a home that fits their needs and that they can comfortably afford right now, according to USA Today. They may be able to refinance later if mortgage rates fall, but there is no guarantee.
Buyers should not expect mortgage rates to fall soon or drop sharply, according to Wilcox. The main point is that the national mortgage rate does not show the full picture.
Mortgage rates have gone up in many parts of the US. However, average rates fell in 13 states between the first and second quarters of 2026.
Homebuyers should look at mortgage rates in their own state, their finances and the local housing market. Comparing lenders and loan options can help. Buyers should also check taxes and insurance costs and try to negotiate the home price. These steps can help lower the total cost of buying a home.