A new study on behalf of Construction Coverage has identified locations where homebuyers get the best mortgage interest rates – and Gainesville is one of those places.
Interest rates have become a central concern for both homebuyers and policymakers. The Federal Reserve’s ongoing effort to curb inflation has led to higher borrowing costs, with rates staying elevated longer than many analysts anticipated. This shift has made mortgages significantly more expensive, complicating the path to homeownership for many Americans.
Report’s Key Takeaways, With Data for Gainesville:
- Sub-7% Mortgage Rates Are Common—But Not Guaranteed: Nationwide, roughly 65% of approved fixed-rate loans in 2024 had rates below 7%, but the likelihood of securing one varied significantly by location.
- Some States Help Buyers Beat the Rate Squeeze: In Alaska and North Dakota, more than 75% of approved home loans had rates under 7%—the highest shares in the country. Following closely were Iowa, Massachusetts, South Dakota, Colorado, and Connecticut, all with shares over 70%.
- Southern Markets See Least Favorable Rates: In Mississippi, just 43.1% of borrowers locked in rates below 7%, the lowest share of any state. Other Southern states like Louisiana (53.5%), Oklahoma (55.5%), and Alabama (57.8%) also ranked near the bottom.
- Mortgage Snapshot for Gainesville Metro Buyers: In the Gainesville metro, 67.9% of fixed-rate mortgages approved in 2024 had rates under 7%. Meanwhile, its median interest rate across all fixed-rate mortgages was 6.625%—a decrease of 0.125 percentage points from the previous year—compared to the national median of 6.750%.
The full report https://constructioncoverage.com/research/cities-with-the-best-mortgage-rates covers nearly 400 U.S. metros and all 50 states, with a detailed breakdown of sub-7% loan approval rates, rate changes over time, and median home prices for 30- and 15-year mortgages in each location.