Mortgage rates ticked up slightly on May 14, 2025, following a mixed April inflation report from the Bureau of Labor Statistics. While year-over-year inflation cooled to its slowest pace since February 2021, housing costs remain elevated—contributing to instability in mortgage interest rates across the board.
Today’s mortgage interest rates
According to Zillow data, the average mortgage rates today are:
- 30-year fixed: 6.84% (+0.08%)
- 20-year fixed: 6.38% (+0.03%)
- 15-year fixed: 6.06% (−0.01%)
- 5/1 ARM: 7.34%
- 7/1 ARM: 7.42%
- 30-year VA: 6.33%
- 15-year VA: 5.78%
- 5/1 VA: 6.50%
These rates are national averages and may vary depending on your location, credit profile, and lender.
Today’s refinance rates
Refinance rates have also seen modest changes:
- 30-year fixed refinance: 6.91%
- 20-year fixed refinance: 6.53%
- 15-year fixed refinance: 6.03%
- 5/1 ARM refinance: 7.57%
- 7/1 ARM refinance: 7.43%
- 30-year VA refinance: 6.30%
- 15-year VA refinance: 5.91%
- 5/1 VA refinance: 6.35%
Refinancing typically comes with slightly higher rates than new purchase loans, though not always.
Why are mortgage rates fluctuating?
The April Consumer Price Index showed slowing overall inflation, raising hopes that the Federal Reserve might cut rates in the coming months. However, rising housing costs remain a concern. That contrast has made mortgage markets volatile.
Uncertainty over the Fed’s next move means borrowers may continue to see minor rate swings in the near term.
HOUSING CRISIS: What do we know right now about the U.S. housing market?
30-year vs. 15-year fixed mortgages
30-year fixed mortgages offer lower monthly payments and rate stability, but come with higher interest costs over the loan’s lifetime.
15-year fixed mortgages feature lower interest rates and significant long-term savings, but higher monthly payments. They’re ideal for borrowers who can afford a faster payoff.
Should you consider an ARM?
Adjustable-rate mortgages (ARMs) like the 5/1 ARM or 7/1 ARM begin with a fixed rate for a set period, then adjust annually. ARMs can be attractive if you plan to sell or refinance before the rate adjusts.
However, with today’s ARM rates exceeding fixed rates, many borrowers may prefer the predictability of fixed-rate loans—at least for now.
How to get the lowest mortgage or refinance rate
To secure the best rate:
- Improve your credit score
- Lower your debt-to-income ratio
- Compare quotes from multiple lenders
- Consider a shorter loan term if affordable
What happens next?
While inflation is cooling, elevated housing costs could keep mortgage rates from dropping sharply. Buyers and homeowners should monitor upcoming Fed announcements and economic data.
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