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15 Cities Where Homebuyers Get the Best Mortgage Rates

wife hugging her husband in front of the house they just moved in while holding key
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Editor’s Note: This story originally appeared on Construction Coverage.

As the cost of homeownership continues to grow out of reach for many Americans, mortgage interest rates have become a central concern for both homebuyers and policymakers.

The Federal Reserve’s ongoing effort to curb inflation is keeping interest rates elevated for longer than many analysts expected, making home loans persistently expensive.

These high interest rates have somewhat cooled the housing market but have not been sufficient to balance the rise in borrowing costs. As a result, many prospective buyers face the daunting combination of steep home prices and expensive financing.

Interest rates vary geographically due to local market conditions, the financial health of residents, and laws governing lenders.

Researchers at Construction Coverage analyzed the latest data from the 2023 Home Mortgage Disclosure Act to find the locations where homebuyers can secure the best mortgage rates.

Here are the major metropolitan areas with the best home mortgage rates. For more detailed information on data sources and calculations, see the methodology section at the end.

1. Austin-Round Rock-Georgetown, TX

Downtown Austin, Texas
Roschetzky Photography / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 73.3%
  • Share of 30-year mortgages with <7.0% rate: 79.0%
  • Share of 15-year mortgages with <7.0% rate: 94.7%
  • Median interest rate across all fixed-rate mortgages: 6.500%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.512 pp
  • Median home sale price (financed w/ 30-year mortgage): $475,000
  • Median home sale price (finance w/ 15-year mortgage): $545,000

2. Denver-Aurora-Lakewood, CO

Denver skyline
Andrew Zarivny / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 71.6%
  • Share of 30-year mortgages with <7.0% rate: 74.0%
  • Share of 15-year mortgages with <7.0% rate: 92.4%
  • Median interest rate across all fixed-rate mortgages: 6.624%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.624 pp
  • Median home sale price (financed w/ 30-year mortgage): $595,000
  • Median home sale price (finance w/ 15-year mortgage): $715,000

3. Raleigh-Cary, NC

Home in Raleigh, North Carolina
Wileydoc / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 71.6%
  • Share of 30-year mortgages with <7.0% rate: 74.0%
  • Share of 15-year mortgages with <7.0% rate: 91.8%
  • Median interest rate across all fixed-rate mortgages: 6.500%
  • Change in median interest rate across all fixed-rate mortgages (2022–-2023): +1.625 pp
  • Median home sale price (financed w/ 30-year mortgage): $445,000
  • Median home sale price (finance w/ 15-year mortgage): $475,000

4. Washington-Arlington-Alexandria, DC-VA-MD-WV

Washington, D.C.
Christian Hinkle / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 71.5%
  • Share of 30-year mortgages with <7.0% rate: 74.2%
  • 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 (2022-2023): +1.750 pp
  • Median home sale price (financed w/ 30-year mortgage): $555,000
  • Median home sale price (finance w/ 15-year mortgage): $605,000

5. Boston-Cambridge-Newton, MA-NH

Back Bay Boston
Jorge Salcedo / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 71.0%
  • Share of 30-year mortgages with <7.0% rate: 69.0%
  • Share of 15-year mortgages with <7.0% rate: 93.4%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.875 pp
  • Median home sale price (financed w/ 30-year mortgage): $615,000
  • Median home sale price (finance w/ 15-year mortgage): $655,000

6. Pittsburgh, PA

Pittsburgh
esb-professional / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 70.8%
  • Share of 30-year mortgages with <7.0% rate: 71.8%
  • Share of 15-year mortgages with <7.0% rate: 83.3%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.525 pp
  • Median home sale price (financed w/ 30-year mortgage): $255,000
  • Median home sale price (finance w/ 15-year mortgage): $335,000

7. San Francisco-Oakland-Berkeley, CA

San Francisco, home to Minerva University, which is virtual and has no campus
Engel Ching / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 70.4%
  • Share of 30-year mortgages with <7.0% rate: 72.8%
  • Share of 15-year mortgages with <7.0% rate: 89.4%
  • Median interest rate across all fixed-rate mortgages: 6.500%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.950 pp
  • Median home sale price (financed w/ 30-year mortgage): $965,000
  • Median home sale price (finance w/ 15-year mortgage): $855,000

8. Sacramento-Roseville-Folsom, CA

Home in Sacramento, California
Victoria Ditkovsky / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 69.9%
  • Share of 30-year mortgages with <7.0% rate: 74.4%
  • Share of 15-year mortgages with <7.0% rate: 82.8%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.649 pp
  • Median home sale price (financed w/ 30-year mortgage): $585,000
  • Median home sale price (finance w/ 15-year mortgage): $625,000

9. Hartford-East Hartford-Middletown, CT

Hartford, Connecticut
Sean Pavone / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 69.7%
  • Share of 30-year mortgages with <7.0% rate: 67.8%
  • Share of 15-year mortgages with <7.0% rate: 96.3%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.500 pp
  • Median home sale price (financed w/ 30-year mortgage): $325,000
  • Median home sale price (finance w/ 15-year mortgage): $375,000

10. New York-Newark-Jersey City, NY-NJ-PA

Newark, New Jersey
EQRoy / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 69.5%
  • Share of 30-year mortgages with <7.0% rate: 72.3%
  • Share of 15-year mortgages with <7.0% rate: 91.0%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.875 pp
  • Median home sale price (financed w/ 30-year mortgage): $605,000
  • Median home sale price (finance w/ 15-year mortgage): $625,000

11. San Jose-Sunnyvale-Santa Clara, CA

Santa Clara, California
Sundry Photography / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 69.1%
  • Share of 30-year mortgages with <7.0% rate: 76.7%
  • Share of 15-year mortgages with <7.0% rate: 84.7%
  • Median interest rate across all fixed-rate mortgages: 6.500%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +2.000 pp
  • Median home sale price (financed w/ 30-year mortgage): $1,255,000
  • Median home sale price (finance w/ 15-year mortgage): $955,000

12. San Antonio-New Braunfels, TX

View of downtown San Antonio, Texas.
f11photo / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 68.9%
  • Share of 30-year mortgages with <7.0% rate: 76.7%
  • Share of 15-year mortgages with <7.0% rate: 84.3%
  • Median interest rate across all fixed-rate mortgages: 6.500%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.375 pp
  • Median home sale price (financed w/ 30-year mortgage): $335,000
  • Median home sale price (finance w/ 15-year mortgage): $345,000

13. Nashville-Davidson-Murfreesboro-Franklin, TN

Nashville, Tennessee
Kevin Ruck / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 68.9%
  • Share of 30-year mortgages with <7.0% rate: 72.0%
  • Share of 15-year mortgages with <7.0% rate: 88.6%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.625 pp
  • Median home sale price (financed w/ 30-year mortgage): $455,000
  • Median home sale price (finance w/ 15-year mortgage): $535,000

14. Dallas-Fort Worth-Arlington, TX

Dallas, Texas
Kevin Ruck / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 68.8%
  • Share of 30-year mortgages with <7.0% rate: 72.9%
  • Share of 15-year mortgages with <7.0% rate: 89.7%
  • Median interest rate across all fixed-rate mortgages: 6.625%
  • Change in median interest rate across all fixed-rate mortgages (2022-2023): +1.625 pp
  • Median home sale price (financed w/ 30-year mortgage): $435,000
  • Median home sale price (finance w/ 15-year mortgage): $515,000

15. Charlotte-Concord-Gastonia, NC-SC

Home in Charlotte, North Carolina
Elizabeth Foley / Shutterstock.com
  • Share of fixed-rate mortgages with <7.0% rate: 68.8%
  • Share of 30-year mortgages with <7.0% rate: 70.9%
  • 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 (2022-2023): +1.635 pp
  • Median home sale price (financed w/ 30-year mortgage): $415,000
  • Median home sale price (finance w/ 15-year mortgage): $460,000

Methodology

Man studying data on his computer
Rawpixel.com / Shutterstock.com

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 2023 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 2023 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 (2022-2023), 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.

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