Hawaii, California, New York, Connecticut, Colorado, Utah, Massachusetts, Rhode Island, Florida and Texas -- all received that dubious distinction, handed out this week by industry aggregator GOBankingRates.
The site formed the list by comparing 15- and 30-year mortgage rates from across the country and during the first quarter. Its formula also factored in average listing prices for each state.
Hawaii came out on top – or rather on bottom – once the numbers were tallied.
Its “30-year mortgage rate average doesn’t help matters much,” GOBankingRates says. “The middling average rate of 3.768% would result in a staggering $4,731 monthly mortgage payment for the average home listing price.”
Ironically, the sunny state, according to the report, has a “decent” average 15-year mortgage rate at 3.031% APR. That wasn’t, unfortunately, enough to counteract Hawaii’s high listing prices – the highest, in fact, for the nation, at $1,019,316.
The list actually offers brokers in the top 10 states an opportunity to better market their own rates, generally lower than their big bank competitors. It’s about turning a potential negative into a positive, say industry players.
That ranking of states is already raising eyebrows and blood pressure across the mortgage industry, but it also has the potential to help originators better sell their services.