Originally published by 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 efforts to curb inflation with elevated 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 ranked states according to the share of all fixed-rate mortgages with less than a 7% interest rate. Only conventional home purchase loans approved in 2023, the latest data available, were included in the analysis.
These are the key takeaways from the report for Maryland:
- 65.9% of fixed-rate mortgages approved in Maryland had rates below 7% last year, with a median interest rate of 6.750%.
- Meanwhile, Maryland’s median home sale price, when financed with a 30-year mortgage, was $435,000; for a 15-year, $455,000.
- Overall, Maryland has the 9th largest share of homebuyers getting mortgage interest rates below 7% out of any U.S. state.
Source: Construction Coverage analysis of Freddie Mac data | Image Credit: Construction Coverage
Here is a snapshot of the data table included in the full report, looking at the 15 states with the largest share of fixed-rate mortgages with rates below 7.0%:
