May 23, 2025 – 30-Year Rates Steady, 15-Year Rates Up – Forbes Advisor

The current average mortgage rate on a 30-year fixed mortgage is 6.99%, compared to 6.92% a week earlier, according to the Mortgage Research Center.

For borrowers who want a shorter mortgage, the average rate on a 15-year fixed mortgage is 6.05%, up 2.34% from the previous week.

If you want to lock in a lower rate by refinancing, compare your existing mortgage rate to today’s refinance rates.

30-Year Mortgage Rates Climb 1.10%

Today, the average rate on a 30-year mortgage is 6.99%, compared to last week when it was 6.92%.

The APR on a 30-year, fixed-rate mortgage is 7.02%. The APR was 6.95% last week. APR is the all-in cost of your loan.

With today’s interest rate of 6.99%, a 30-year fixed mortgage of $100,000 costs approximately $665 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. Borrowers will pay about $140,065 in total interest over the life of the loan.

15-Year Mortgage Rates Climb 2.34%

Today, the 15-year mortgage rate inched up to 6.05%, higher than it was one day ago. Last week, it was 5.91%.

The APR on a 15-year fixed is 6.1%. It was 5.96% this time last week.

A 15-year fixed-rate mortgage of $100,000 with today’s interest rate of 6.05% will cost $846 per month in principal and interest. Over the life of the loan, you would pay $52,829 in total interest.

Jumbo Mortgage Rates Drop 0.82%

The average interest rate on the 30-year fixed-rate jumbo mortgage (mortgages above 2025’s conforming loan limit of $806,500 in most areas) declined to 7.49%. Last week, the average rate was 7.55%.

Borrowers with a 30-year fixed-rate jumbo mortgage with today’s interest rate of 7.49% will pay $699 per month in principal and interest per $100,000. That means you’d pay around $151,890 in total interest over the life of the loan.

Mortgage Rate Trends in 2025

Mortgage rates initially trended downward post-spring 2024. However, they surged again in October 2024—despite cuts by the Federal Reserve to the federal funds rate (its benchmark interest rate) in September, November and December 2024.

Rates began to drop again in mid-January 2025, but experts don’t forecast them falling by a significant amount in the near future.

When Can I Expect Mortgage Rates To Drop?

Various economic factors influence mortgage rates, making it challenging to forecast when rates will drop.

The Federal Reserve’s decisions significantly impact mortgage rates. In response to inflation or an economic downturn, the Fed may lower its federal funds rate, prompting lenders to reduce mortgage rates.

Mortgage rates also track U.S. Treasury bond yields. If bond yields drop, mortgage rates typically follow suit.

Finally, global events that cause financial disruptions can affect mortgage rates. For example, the Covid-19 pandemic led to record-low interest rates when the Fed cut rates.

While a significant decrease in mortgage rates is unlikely in the near future, they may start to decline if inflation eases or the economy weakens.

How To Calculate Mortgage Payments

Mortgages and mortgage lenders are often a necessary part of purchasing a home, but it can be tough to understand what you’re paying for—and what you can truly afford.

Using a mortgage calculator can help you estimate your monthly mortgage payment based on your interest rate, purchase price, down payment and other expenses.

Here’s what you’ll need in order to calculate your monthly mortgage payment:

• Home price
• Down payment amount
• Interest rate
• Loan term
• Taxes, insurance and any HOA fees

How Are Mortgage Rates Determined?

Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don’t charge mortgage insurance premiums or similar ongoing charges that increase the loan’s APR.

Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees.

Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate.

The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases.

What Type of Mortgage Is Best for You?

Many home buyers are eligible for several mortgage loan types. Each program can have its own advantages:

• Conventional mortgage. A conventional home loan is ideal for borrowers with good or excellent credit to qualify for competitive rates. Additionally, making a minimum 20% down payment helps you waive private mortgage insurance premiums.
• FHA loan. An FHA home loan is best when applying with imperfect credit or a low down payment. You can put as little as 3.5% down with a credit score above 580. A minimum 10% down payment is necessary for credit scores ranging from 500 to 579.
• VA loan. Borrowers with a qualifying military background may prefer a VA loan for its flexibility. A down payment may not be required. While you pay a one-time funding fee, there are no ongoing mortgage insurance premiums or service fees.
• USDA loan. Applicants in eligible rural areas can buy or build a home with no down payment, although an upfront and annual guarantee fee applies. Additionally, income requirements apply and this program requires a moderate income or lower.
• Jumbo loan. Homebuyers in a high-cost-of-living area will need to apply for a jumbo loan when the loan amount exceeds the Federal Housing Finance Agency’s conforming loan limits. The limit in most municipalities is $806,500 in 2025.

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