Mortgage rates continue to fluctuate in mid-May, with the average 30-year fixed mortgage dipping just below 7% after a brief spike earlier this month.
According to Zillow, the national average 30-year fixed mortgage rate stands at 6.99% as of May 16, 2025—down two basis points from the previous day. However, it remains up slightly from last week’s average of 6.96%.
Current national mortgage rates (as of May 16, 2025)
| Loan Type | Interest Rate | 1W Change | APR | 1W Change |
|---|---|---|---|---|
| 30-Year Fixed | 6.99% | ▲ 0.03% | 7.48% | ▲ 0.06% |
| 15-Year Fixed | 6.12% | ▲ 0.09% | 6.44% | ▲ 0.12% |
| 5-Year ARM | 7.13% | ▼ 0.54% | 7.62% | ▼ 0.41% |
| FHA 30-Year Fixed | 7.05% | ▲ 0.05% | 8.08% | ▲ 0.05% |
| VA 30-Year Fixed | 6.55% | ▲ 0.13% | 6.77% | ▲ 0.14% |
| Jumbo 30-Year Fixed | 7.72% | ▲ 0.16% | 8.14% | ▲ 0.18% |
*Data from Zillow; updated May 16, 2025
Why rates matter now
A 0.25% difference in your mortgage rate could mean paying thousands more—or less—over the life of your loan. With rates hovering around 7%, buyers and refinancers alike are looking for opportunities to lock in the lowest rate possible.
How to get the best mortgage rate
Here are five ways to secure a better mortgage deal:
- Shop around – Don’t settle for the first lender. Compare quotes from at least three.
- Improve your credit score – Higher scores typically unlock lower rates.
- Increase your down payment – 20% or more can qualify you for lower tiers.
- Compare APRs, not just rates – APR includes lender fees and shows true cost.
- Consider different loan types – 15-year fixed and ARM loans may offer lower rates but higher monthly payments.
What’s trending in the market
- 30-year fixed: Below 7% after peaking at 7.3% earlier this week.
- 15-year fixed: Slowly climbing, now at 6.12%.
- ARM loans: Significant drop for 5-year ARMs (now 7.13%) could attract buyers seeking lower initial payments.
- FHA and VA loans: Rates rose slightly but remain competitive for eligible borrowers.
Key takeaway
Mortgage rates remain volatile, but today’s dip may provide a brief opening for buyers and refinancers. Those with excellent credit and a strong down payment could lock in a rate under 7%, while borrowers considering adjustable-rate options may benefit from short-term savings.
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