Iowans saw some relief on mortgage costs in the first half of the year, according to a recent report from WalletHub. According to the personal finance company’s analysis, Iowa recorded the third-largest decrease in mortgage interest rates nationwide between the first and second quarters of 2025. Rates fell 16.4 percent during that period, bringing the state average mortgage rate down to about 5.46 percent. That figure is still the 21st-highest rate among the 50 states. The report comes as homeownership has grown more expensive nationwide. Mortgage rates nationwide in Q2 ranged from as low as 4.35 percent in Idaho to as high as 6.85 percent in New Jersey. Despite the rate drop, Iowa ranks just 42nd for reductions in mortgage delinquency, partially due to an already low delinquency rate, and 42nd for increases in mortgage debt. Analysts say this suggests that residents are not piling on new financial risks, but are also seeing less overall relief compared to many other states. Read the full report below.
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