At a time when soaring housing costs are weighing heavily on U.S. homeowners, West Virginia is offering the lowest mortgage payments in the nation, according to a recent report by Realtor.com.
While mortgage rates are still hovering around the 7-percent mark nationally, homeowners’ mortgage payments can vary wildly from state to state, and in some parts of the country, people have much more affordable rates.
A majority of the most affordable states are in the Midwest and the South, Realtor.com found, where home prices are generally lower than in the rest of the country.
Why It Matters
Despite recent rate cuts by the Federal Reserve, mortgage rates are still higher than American homebuyers would wish for and can afford, propped up by stubborn inflation and low unemployment.
After crossing the 7-percent mark in mid-January, the 30-year, fixed-rate mortgage saw its first decline in six weeks on January 23, according to Freddie Mac. As of Thursday, the 30-year, fixed-rate mortgage was 6.96 percent—still hovering near its post-pandemic peak.
Stubbornly high mortgage rates, combined with still-soaring home prices and surging homeowners association (HOA) fees and insurance premiums in many states, are keeping many aspiring homebuyers on the sidelines of the market.
What to Know
These are the 10 states with the lowest monthly mortgage payments, according to Realtor.com:
- West Virginia, with a median monthly mortgage payment of $1,838 and a median listed home price of $249,000.
- Ohio, with a median monthly mortgage payment of $1,864 and a median listed home price of $252,500.
- Michigan, with a median monthly mortgage payment of $1,983 and a median listed home price of $268,700.
- Louisiana, with a median monthly mortgage payment of $2,029 and a median listed home price of $274,950.
- Iowa, with a median monthly mortgage payment of $2,058 and a median listed home price of $278,850.
- Indiana, with a median monthly mortgage payment of $2,066 and a median listed home price of $279,900.
- Kansas, with a median monthly mortgage payment of $2,094 and a median listed home price of $283,712.
- Mississippi, with a median monthly mortgage payment of $2,136 and a median listed home price of $289,450.
- Missouri, with a median monthly mortgage payment of $2,140 and a median listed home price of $289,900.
- Oklahoma, with a median monthly mortgage payment of $2,140 and a median listed home price of $290,000.
Realtor.com’s list also includes Arkansas, with a median monthly mortgage payment of $2,148 and a median listed home price of $291,000. All these states have median monthly payments below the national average, which is $2,971.
The highest mortgage payments were recorded by the website in Hawaii, Massachusetts, California, New York, and Montana. In Hawaii, Massachusetts, and California, the median monthly mortgage payment was above $5,000. In New York and Montana it was above $4,000.
What People Are Saying
Realtor.com senior economic research analyst Hannah Jones said in a statement accompanying the report: “In today’s high-rate environment, housing payments are fairly high across the country. However, areas with lower-priced homes see lower monthly mortgage payments. The median home price was just $249,000 in West Virginia in December, the lowest of any state in the country, and the typical housing payment reflects that.”
Kevin Thompson, a finance expert and the founder and CEO of 9i Capital Group, previously told Newsweek: “With the 10-year Treasury yield climbing above 4.5 percent and nearing 5 percent, housing affordability will likely become even more challenging. I expect mortgage rates to remain between 6.5 percent and 7.5 percent indefinitely.”
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, previously told Newsweek: “Unless something dramatic happens, it’s fair to say the jubilation over the housing market for 2025 was certainly a situation of putting the cart before the horse.
“While interest rates were cut, and we can expect two more cuts next year, this is less than the four originally expected. The Fed’s concerns of inflation still being higher than expected combined with a jump of Treasury yields actually caused mortgage interest rates to jump in recent weeks, not go lower.”
What’s Next
According to Realtor.com’s Jones, even the most affordable areas of the country might become more expensive as housing demand for low-priced homes surges, causing prices to climb. “Climbing prices in affordable areas mean that even with improving mortgage rates, housing payments could continue to get more expensive shortly,” she said.
A map of the 10 states with the lowest median monthly mortgage payments in the country in January, according to Realtor.com data.
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