Mortgage rates edged slightly lower on Tuesday, May 20, 2025, with the average 30-year fixed rate now at 7.03%, according to Zillow. That’s a decrease of 2 basis points from the previous day, but still slightly above last week’s average of 7.01%.
The national average for a 15-year fixed mortgage rose to 6.13%, while 5-year adjustable-rate mortgages (ARMs) remained unchanged at 7.45%.
Current mortgage rate summary
Here’s how rates compare for the most common loan types:
| Loan Type | Rate | 1-Week Change | APR | 1-Week Change |
|---|---|---|---|---|
| 30-Year Fixed | 7.03% | +0.02% | 7.51% | +0.03% |
| 15-Year Fixed | 6.13% | +0.03% | 6.45% | +0.04% |
| 5-Year ARM | 7.45% | –0.33% | 7.83% | –0.24% |
| FHA 30-Year Fixed | 6.75% | –0.16% | 7.80% | –0.15% |
| VA 30-Year Fixed | 6.45% | –0.01% | 6.62% | –0.05% |
| Jumbo 30-Year Fixed | 7.47% | –0.05% | 7.73% | –0.23% |
Mortgage rate trends
Over the past 90 days, 30-year fixed mortgage rates have fluctuated between 6.2% and 7.3%. The rate peaked at 7.30% on April 11 before trending downward again. Today’s rate of 7.03% suggests a modest decline following recent economic data and Federal Reserve statements.
Similarly, 15-year fixed loans have trended upward since early March but remain well below the peak seen in mid-April.
How to get the best mortgage rate
Homebuyers can save thousands over the life of a loan by securing the lowest possible mortgage rate. Here are five tips to improve your chances:
- Shop around for lenders: Don’t accept the first quote. Compare offers from multiple banks or credit unions.
- Compare fees: Focus on both the interest rate and the annual percentage rate (APR), which includes lender fees.
- Increase your down payment: A down payment of 20% or more can unlock better rates.
- Improve your credit score: Higher credit scores typically mean lower interest rates.
- Consider loan types: A shorter-term or adjustable-rate mortgage may offer initial savings depending on your timeline.
Fixed vs. adjustable mortgage options
Choosing the right loan type depends on your financial goals:
- 30-year fixed: Offers stability and predictable payments. Best for long-term homeowners.
- 15-year fixed: Lower interest rate, but higher monthly payments.
- 5/1 ARM: Lower initial rate for five years, then adjusts annually. Ideal for short-term ownership or refinance plans.
What’s next for rates?
While mortgage rates remain elevated compared to historical averages, slight declines this week offer a modest opportunity for buyers or refinancers. Economic data, inflation trends, and upcoming Federal Reserve decisions will continue to influence rate movement.
Key takeaways
- Average 30-year fixed rate: 7.03%
- Average 15-year fixed rate: 6.13%
- 5-year ARM holds at 7.45%
- Rates vary by credit score, location, and loan type
- Shop, compare, and act quickly to lock in the best deal
For updated tools, calculators, and pre-approval options, visit Zillow’s mortgage center.