Gone are the historically low mortgage rates seen during the COVID-19 pandemic, and homeowners in the U.S. are dealing with an increase in these interest rates on top of higher home prices and insurance premiums. The mortgage interest rate increased in 44 U.S. states between Q1 and Q2 2024, WalletHub reports. The average interest rate has stuck around 6% on 30-year fixed mortgages this year, while dipping only a little for 15-year fixed loans. To alleviate some of the financial risk involved in purchasing a home, lenders often require borrowers who make a down payment of less than 20% to purchase mortgage insurance. However, this coverage exists to protect the lender, not the homeowner, in case payments fall behind. According to the Consumer Financial Protection Bureau (CFPB), mortgage insurance may allow buyers to qualify for a home loan that they otherwise would have been unable to get. This coverage is also typically required for those who receive Federal Housing Administration (FHA) or U.S. Department of Agriculture (USDA) loans. Mortgage insurance does increase the cost of the loan, though, and is generally included in the total monthly payment made to the lender, the home's closing costs or both, the CFPB explains. Despite largely increased costs, homeowners in some states are faring better than others when it comes to interest. The states WalletHub reports were lucky enough to see a decrease in interest rates from the first to second quarter of 2024 were Connecticut (-0.07%), Utah (-0.09%), Montana (-0.14%), Rhode Island (-0.45%), Texas (-0.95%) and Idaho (-1.12%). In the slideshow above, we'll look at the ten states WalletHub found to have the largest jump in mortgage interest rates during this period.

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