Average USDA Purchase Loan Rate by State

Government Loans
Origination Trends
Map of the US shaded by average note rate on agency USDA purchase loans, January to July 2026. The national average is 5.91%. Rates are lowest in Texas (5.14%), Arizona (5.49%) and South Dakota (5.51%), and highest in Illinois (6.21%), Wisconsin (6.19%) and Missouri (6.16%).
Chart Download and Page Share

Share or Download

Data Points
Chart | Average note rate on agency USDA purchase loans by state | January to July 2026 Scope | Agency USDA Rural Housing purchase loans | August and September 2026 not shown because of securitization lag | Puerto Rico not mapped | Rhode Island blank (1 loan) All states | about 5.9% average | down about 0.4 percentage points from about 6.3% a year earlier Lowest | Texas about 5.1% | Arizona and South Dakota about 5.5% Highest | Illinois, Wisconsin and Missouri about 6.2% Full state series, by seller/issuer, with loan amount, credit score, DTI and LTV | MBS Pivot

What is the average interest rate on a USDA purchase loan in each state?

Agency USDA purchase loans averaged a 5.91% note rate from January to July 2026, down from 6.31% a year earlier. Texas was lowest at 5.14%, and Illinois was among the highest at 6.21%.
Date Published:
October 28, 2026
Date Updated:
October 28, 2026
Chart type:
Map
Suggested Citation:
Polygon Research, "Average USDA Purchase Loan Rate by State," Polygon Pulse – MBS Pivot, published October 28, 2026. Scope: agency USDA Rural Housing purchase loans, January to July 2026; year-earlier comparison is January to July 2025. Metric: average note rate by state. Rhode Island is blank (1 loan). August and September 2026 are not shown because of securitization lag. Puerto Rico is not mapped. Accessed October 28, 2026.
Key insights

The average note rate on agency USDA purchase loans was 5.91% in the first seven months of 2026, down from 6.31% a year earlier, a drop of 0.41 percentage points. Every state with loans in both periods came down. The spread between states is wide for a single program. Texas averages 5.14%, Arizona 5.49% and South Dakota 5.51%. Illinois averages 6.21%, Wisconsin 6.19% and Missouri 6.16%.

The two states with the most USDA loans sit far apart. Louisiana, the largest market at 1,677 loans, averages 5.94%. Missouri, the second largest, averages 6.16%. Texas, tied for third at 1,412 loans, prices 1.0 percentage point below Missouri and 0.77 below the national average. Differences like these reflect lender mix, borrower credit and loan size as much as geography.

A lender can compare its own average rate by state with the market, a peer group or a specific competitor, by seller/issuer, in MBS Pivot. The same view adds loan amount, credit score, DTI and LTV. Explore USDA lending in MBS Pivot.

What is the average interest rate on a USDA purchase loan in each state?

The national average was 5.91% from January to July 2026. Texas was lowest at 5.14% and Illinois was among the highest at 6.21%.

Have USDA purchase loan rates come down?

Yes. The average rate fell 0.41 percentage points, from 6.31% to 5.91%, compared with January to July 2025. Every state with loans in both periods came down.

Which large states have the lowest USDA rates?

Among the six largest markets, Texas averages 5.14% and Alabama 5.73%. Louisiana and Arkansas average 5.94%, Tennessee 5.89% and Missouri 6.16%.

From Analysis to Action

This analysis provides a clear blueprint for how to uncover meaningful market dynamics. Its true power is unleashed when you apply this same methodology to your own local markets. Because all real estate is local, this granular approach is essential for crafting precise strategies that effectively address the unique conditions of each community.

Ready to Continue? Get Your Exact Market Answers.

Go beyond generic insights. Polygon's interactive tools and limitless filtering empower you to tailor market data to your specific strategy.
Start your 7-day free trial.
Unlock My Custom Insights Now - Free Trial