Mortgage rates today are lower for the second consecutive week, offering a modest break for buyers and homeowners. The average 30-year fixed rate dropped to 6.76%, down from 6.81% a week ago, according to Freddie Mac. Rates remain elevated compared to historic norms but are nearly 40 basis points lower than this time last year.
Housing market shows mixed signals
New listings rose in April compared to last year, but overall market momentum is slowing. Homes are staying on the market longer, and inventory is building — clear signs that high borrowing costs are tempering buyer demand.
Mortgage applications fell 2% from a week ago, but purchase activity edged up 1%, driven mainly by increased FHA loan applications, according to the Mortgage Bankers Association.
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How mortgage rates are determined
Mortgage rates are most closely tied to the 10-year Treasury yield, which moves with inflation expectations and economic outlooks. Lower Treasury yields usually lead to falling mortgage rates.
Individual borrower factors also affect rates. Lenders assess credit scores, down payments, property types, and loan terms to determine final offers.
Current refinance mortgage rates
Homeowners considering refinancing are seeing these average rates as of May 2, 2025, according to Zillow:
- 30-year fixed refinance: 6.86%
- 20-year fixed refinance: 6.75%
- 15-year fixed refinance: 5.94%
- 10-year fixed refinance: 6.08%
- Jumbo 30-year refinance: 7.52%
Refinancing typically makes financial sense if borrowers can cut at least one percentage point off their current rate.
Best states for mortgage rates today
States offering the lowest 30-year mortgage rates, ranging from 6.68% to 6.88%, include:
- New York
- Texas
- Florida
- Pennsylvania
- Washington
- Arizona
- New Jersey
- Utah
Higher credit scores, larger down payments, and shopping around can help borrowers qualify for these lower rates.
Key takeaways
- 30-year fixed mortgage rates average 6.76% nationally.
- Refinance rates are slightly higher at 6.86%.
- Housing demand continues to cool amid elevated rates.
- Markets are steady, but rates remain volatile short term.