MIAMI—With the average interest rate on mortgages increasing in 44 of the 50 states between Q1 2024 and Q2 2024, consumers in Colorado experienced the biggest hits to their monthly payments, a new study shows.
WalletHub has released its new report on the States Where Mortgage Interest Rates Are Increasing the Most, based on proprietary user data.
The states with the top three increases:
Colorado
Colorado had the largest increase in the average mortgage interest rate between Q1 2024 and Q2 2024, at around a 4.9% hike. “This is significantly higher than the increase in other states, with only one other state even having an increase above 3% and most increasing by less than 2%,” WalletHub said.
“Even with this big increase, the average mortgage rate in Colorado rose to only 5.7% in Q2 2024, making it the 29th-most expensive state. Nevertheless, Colorado already ranks 13th among the states where mortgage delinquency is increasing the most, and 18th among the states adding the most mortgage debt, so increasing interest rates may exacerbate this problem in the future,” WalletHub said.
Missouri
Missouri experienced the second-largest increase in the average mortgage interest rate between Q1 2024 and Q2 2024, with a 3.1% increase. “While this is a significant increase, it’s still nearly 1.8% less than the increase in Colorado, the number one state,” WalletHub said. “As of Q2 2024, the average mortgage interest rate in Missouri was 6.3%, the 11th-most expensive rate in the country. Some Missouri residents are having trouble keeping up with payments, as the state ranks 18th among the states where mortgage delinquency is increasing the most. On top of expensive interest, Missouri residents also have to deal with relatively costly real estate taxes.”
Louisiana
In Louisiana, the average mortgage interest rate increased by 2.7% between Q1 2024 and Q2 2024, the third-largest increase in the country. This brought the average mortgage interest rate up to around 6.8%, the seventh-highest average in the country. For comparison, average interest rates in other states range from around 4.8% to 7.4%.
“Because of Louisiana’s high interest rates, it’s not surprising that it ranks ninth among the states where mortgage delinquency is increasing the most. This is further supported by the fact that it’s among the top 10 states with the most people in financial distress,” WalletHub said.