North Dakota Sees Mortgage Rate Relief, Outpacing Neighbors

North Dakota homeowners are finding some relief as mortgage interest rates continue to ease, according to a new WalletHub analysis released this week.

The report shows the state ranked 17th in the nation for the largest quarter-over-quarter drop in average mortgage rates between the first and second quarters of 2025. North Dakota’s average rate now stands at 5.16%, down 13.75% from earlier this year.

While the decrease is not the sharpest in the country—Alabama led with a nearly 17% decline—it still represents meaningful relief for North Dakotans squeezed by years of soaring housing costs and high borrowing rates.

Neighboring states fared somewhat worse. South Dakota landed 28th, with a 12.85% drop and an average rate of 5.59%. Montana, which dropped 12.52% to 5.38%, came in at number 29. Minnesota ranked even lower at 34th, posting only a 10.72% decrease with a 5.58% average rate.

Nationally, every state saw rates ease, but the range was wide. Vermont finished last with only a 6.73% drop, while southern states such as Alabama and Mississippi topped the rankings.

“It’s a difficult time to buy a house, given that home prices have risen astronomically over the past few years and housing shortages make it hard to find the right place even if you have the money.” WalletHub analyst Chip Lupo said. “The upside is that consumers’ home-buying struggles are alleviated by the fact that the average mortgage interest rate decreased in all states between Q1 2025 and Q2 2025.”

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For buyers in North Dakota, the improvement may not offset high prices or limited inventory, but the state’s ranking suggests conditions are softening faster here than in much of the Upper Midwest.