Mortgage rates are edging upward again, adding pressure for homebuyers navigating a difficult spring market. Economic uncertainty, inflation concerns, and trade tensions are keeping rates volatile—and today’s numbers reflect that.
According to the latest data:
- 30-year fixed-rate mortgage: 6.83% (up 0.01% from last week)
- 15-year fixed-rate mortgage: 6.02% (down 0.01% from last week)
- 5/1 adjustable-rate mortgage (ARM): 6.11%
Experts predict rates will continue hovering between 6.5% and 7% in the near term, with little relief in sight until later this year.
First-time homebuyer programs available now in 2025
What’s driving mortgage rates higher?
Mortgage rates tend to move in sync with the 10-year Treasury yield, which reacts to inflation trends, Federal Reserve policies, and broader economic signals. Currently, stubborn inflation and fears of a global trade slowdown are pushing yields—and mortgage rates—higher.
Despite cutting rates three times last year, the Federal Reserve has kept interest rates steady throughout 2025. The next Fed meeting is scheduled for today, but analysts expect no immediate changes unless the economy weakens dramatically.
“If tariffs ease or the labor market cracks, the Fed might step in and resume rate cuts,” said Logan Mohtashami, senior analyst at HousingWire. “If that happens, mortgage rates could trend lower.”
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Mortgage rate trends: 2025 outlook
Early forecasts suggested mortgage rates could dip closer to 6% by late 2025. However, persistent inflation and new economic risks are keeping rates higher than expected.
“Bond yields will only fall meaningfully if inflation cools off and economic growth slows,” said Melissa Cohn, regional vice president at William Raveis Mortgage. “If inflation reignites, mortgage rates could climb even further.”
Realistically, even if the economy contracts slightly and the Fed cuts rates this summer, getting mortgage rates below 5.5% would likely require a recession—a risky trade-off.
Quick FAQs: Today’s mortgage rates (May 7, 2025)
➡️ What is today’s average 30-year fixed mortgage rate? Today’s average is 6.83%, slightly higher than last week.
➡️ What is the average 15-year fixed mortgage rate today? The 15-year fixed mortgage rate averages 6.02% as of today.
➡️ Are mortgage rates expected to go down in 2025? Rates could drift lower if inflation cools and the economy weakens, but major drops are unlikely without a recession.
➡️ Should I wait to buy a home? Experts recommend preparing now—boost your credit score, save for a down payment, and be ready to act if rates drop.
➡️ How can I get the best mortgage rate? Shop around, compare multiple lenders, improve your credit, and consider larger down payments to lower your borrowing costs.
Comparing mortgage types: What’s best for you?
30-year fixed-rate mortgages
- Today’s average: 6.83%
- Pros: Lower monthly payments; predictable costs over time.
- Cons: Higher overall interest costs compared to shorter loans.
15-year fixed-rate mortgages
- Today’s average: 6.02%
- Pros: Lower interest rates and less interest paid over the life of the loan.
- Cons: Higher monthly payments.
5/1 adjustable-rate mortgages (ARMs)
- Today’s average: 6.11%
- Pros: Lower introductory rates for the first five years.
- Cons: Rates can adjust significantly after the introductory period.
If you plan to stay in your home long-term, fixed-rate mortgages provide peace of mind.
Short-term homeowners or investors might benefit from an ARM’s lower upfront rates.
How to get the best mortgage rate today
Even with high rates and limited housing inventory, smart strategies can help homebuyers save thousands:
- Save for a larger down payment: Reducing your loan amount lowers your monthly payment and total interest.
- Boost your credit score: Aim for a score above 740 to unlock the most competitive offers.
- Pay down existing debt: Lenders favor borrowers with a debt-to-income ratio under 36%.
- Explore assistance programs: First-time buyer grants and government-backed loans can ease upfront costs.
- Shop multiple lenders: Compare at least three offers to find the lowest rate for your situation.
Taking the time to prepare now means you’ll be ready to act quickly when rates begin to fall again.
Bottom line: Mortgage rates remain elevated as of May 7, 2025, but staying informed, financially prepared, and flexible will put you in the best position to succeed—whether you’re buying your first home or refinancing your current one.