From Yahoo Finance: 2025-05-31 06:00:00

Mortgage rates have dropped today, with the 15-year fixed rate hitting 5.99%. The Federal Reserve’s preferred inflation measure decreased, delaying an expected rate cut until September. The 10-year Treasury yield, a key mortgage rate indicator, rose slightly for the month.

Current national average mortgage rates are: 30-year fixed: 6.84%, 15-year fixed: 5.99%, 5/1 ARM: 7.01%. Refinance rates are slightly higher. Rates are rounded to the nearest hundredth.

A 30-year fixed mortgage offers lower, predictable payments. However, it comes with higher interest rates, leading to more interest paid over the life of the loan. In contrast, a 15-year fixed mortgage offers lower rates but higher monthly payments.

Adjustable-rate mortgages (ARMs) have lower introductory rates but pose risks of rate increases later. Timing the real estate market is challenging, so buy when it’s right for you, not based solely on interest rates.

Mortgage rates are currently down slightly, and are expected to remain stable in 2025. Securing a low refinance rate is similar to buying a home, focusing on improving credit score and DTI ratio. Refinancing to a shorter term can lower rates, but increase monthly payments.

Read more: Lower, with 15-year rates back under 6%