Mostly unchanged following the holiday weekend
From Yahoo Finance: 2025-05-27 06:00:00
Mortgage interest rates stayed relatively stable today, with a 6.90% rate for 30-year fixed mortgages and 6.11% for 15-year fixed mortgages. Traders returning post-Memorial Day will influence rates. Keep an eye on the Republican tax bill and tariff developments. Expect fluctuations in 10-year Treasurys and mortgage rates this week.
Current national averages for various mortgage types are: 30-year fixed: 6.90%, 20-year fixed: 6.72%, 15-year fixed: 6.11%, 5/1 ARM: 6.84%, 7/1 ARM: 7.30%, 30-year VA: 6.49%, 15-year VA: 6.49%, 5/1 VA: 6.49%. Refinance rates are typically higher than purchase rates.
Consider using a mortgage calculator to see how different rates and term lengths affect monthly payments. Yahoo Finance’s calculator includes property taxes and insurance for a comprehensive estimate. Comparing 15- and 30-year mortgages, shorter terms save on interest but come with higher monthly payments.
A $400,000 30-year mortgage at 6.90% has a $2,634 monthly payment, totaling $548,384 in interest over time. Opting for a 15-year mortgage at 6.11% would result in a $3,399 monthly payment and $211,864 in total interest. Making extra payments can help pay off a 30-year mortgage faster.
Fixed-rate mortgages lock in a rate from the start, while adjustable-rate mortgages have a set period before the rate adjusts annually. ARM rates may start lower but can increase over time. Economists don’t anticipate significant drops in mortgage rates before 2025, pending Fed decisions.
Mortgage rates decreased in 2024, but since the Federal Reserve’s 50-basis-point cut to the federal funds rate, rates have mostly risen or remained steady. Future rates hinge on the Fed’s choices in upcoming meetings. There’s a high chance rates will remain unchanged at the June meeting, indicating modest rate movements ahead.
Zillow data shows today’s national averages for 30-year fixed rates at 6.90% for purchases and refinances. Expect minor fluctuations in rates by the end of 2025. While rates may dip slightly, dramatic decreases are unlikely in the near future.