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. Mortgage rates have been rising across much of the US, but not everywhere. This means some homebuyers saw borrowing costs move lower even as rates increased across most of the country.
South Dakota had the second-biggest decline. Wyoming also saw a large decline. But most states moved in the opposite direction. Mississippi had the biggest increase. Colorado recorded the second-largest increase. Experts say buyers should not wait for the perfect mortgage rate before making a decision. Real estate conditions can be very different from one place to another.
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. 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. Its average mortgage rate dropped by 1.22 percentage points between the first and second quarters, reaching 5.50% in Q2, according to WalletHub. 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. 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. Mortgage rates increased in 37 states between Q1 and Q2 2026. Its average mortgage rate rose by 1.92 percentage points, reaching 5.54% in Q2 2026. 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. 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.
WalletHub analyst Chip Lupo said the states where rates fell generally had slower housing markets and stronger borrower finances. Ginger Wilcox, president of Better Homes and Gardens Real Estate , said she generally does not encourage buyers to make decisions based on trying to perfectly time the market. 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.
