Today’s Mortgage Rates – May 31, 2025: Rates Go Down for Homebuyers

As of May 31, 2025, mortgage rates have decreased, offering homeowners and potential buyers advantageous conditions for both purchasing new homes and refinancing existing loans. The 30-year fixed mortgage rate has declined to 6.84%, while the 15-year fixed mortgage rate has notably dipped to 5.99%. This trend signals a favorable environment for borrowers, especially as the Federal Reserve's inflation measures suggest a stable outlook for rates, with expectations for cuts in short-term rates possibly postponed until September.

Today's Mortgage Rates – May 31, 2025: Rates Go Down for Homebuyers

Key Takeaways

• Mortgage rates are lower today compared to recent weeks.
• The 30-year fixed rate is currently 6.84% and the 15-year fixed rate is 5.99%.
• Refinance rates are also lower, making it a good time for existing homeowners considering refinancing.
• The housing market remains competitive, but with signs of easing inflation, conditions may improve further.

Today's Mortgage Rates Overview

Understanding current mortgage rates is crucial for anyone looking to buy a home or refinance their existing mortgage. Below is a comprehensive summary of the mortgage and refinance rates today, as per data from Zillow:

Current Mortgage Rates (as of May 31, 2025)

Type of Loan	Mortgage Rate
30-Year Fixed	6.84%
20-Year Fixed	6.54%
15-Year Fixed	5.99%
5/1 Adjustable Rate Mortgage (ARM)	7.01%
7/1 Adjustable Rate Mortgage (ARM)	7.11%
30-Year VA	6.36%
15-Year VA	5.71%
5/1 VA	6.37%

The rates shown above are the national averages rounded to the nearest hundredth, and they provide a baseline for what borrowers might expect when evaluating their financing options.

Current Mortgage Refinance Rates

If you're considering refinancing your existing mortgage, here are the current refinance rates that you should be aware of:

Type of Loan	Refinance Rate
30-Year Fixed	6.90%
20-Year Fixed	6.53%
15-Year Fixed	6.15%
5/1 ARM	7.43%
7/1 ARM	7.24%
30-Year VA	6.38%
15-Year VA	5.84%
5/1 VA	6.19%

Just as with the purchase rates, the refinance rates provided are national averages and can vary based on specific lender criteria and individual borrower qualifications.

Factors Influencing Today's Mortgage Rates

Today's mortgage rates are influenced by a variety of factors, both economic and systemic.

1. Inflation Measures: Recent data indicate a dip in the Federal Reserve's preferred inflation measures, which can influence expectations for future interest rate adjustments. A lower inflation rate can lead to lower mortgage rates as borrowing costs decline.
2. 10-Year Treasury Yield: The yield on the 10-year Treasury note often acts as a benchmark for mortgage rates. While this yield has increased slightly, the prevailing sentiment about inflation and the economy has led to substantial declines in mortgage rates.
3. Market Sentiment: The outlook for mortgage rates is shaped by economic forecasts, including anticipated job gains and median home price adjustments. According to the National Association of REALTORS®, existing home sales are predicted to rise, which may put upward pressure on prices and, consequently, mortgage rates.

Understanding Mortgage Rate Types

When considering a mortgage, it's essential to understand the different types of mortgage rates available—fixed and adjustable rate mortgages (ARMs).

Fixed-Rate Mortgages

• 30-Year Fixed: This mortgage is popular due to its stable monthly payments spread out over 30 years. While the interest rate is often higher than that of shorter terms, the predictability it offers is a significant advantage.
• 15-Year Fixed: Many buyers prefer this option for its lower interest rates. While your monthly payments will be higher compared to a 30-year loan, you can save significantly in interest over the life of the loan.

Adjustable-Rate Mortgages (ARMs)

ARMs, such as the 5/1 or 7/1, start with lower rates compared to fixed-rate options, but their rates can increase after an initial period. This could lead to unpredictable payments later in the loan's life.

• 5/1 ARM: This type has a fixed rate for the first five years, after which it adjusts annually based on market conditions.
• 7/1 ARM: This option has similar characteristics to the 5/1 ARM but has a fixed rate for the first seven years.

Refinance Rates and Their Implications

Refinancing your mortgage can be a beneficial strategy, particularly in a climate where rates are lower. The refinancing options listed above reflect national trends. Homeowners often choose to refinance to achieve lower monthly payments or secure more favorable terms on their loans.

Why might refinancing be appealing now? As mortgage rates have dipped, many homeowners can take advantage of the lower payments, especially if they secured a higher rate loan in previous years. It's vital for homeowners to analyze their specific situations and consider the overall costs associated with refinancing, including closing costs and lender fees.

The Housing Market Context

With home prices stabilizing compared to the significant increases observed during the pandemic, May 2025 presents a preliminary but encouraging landscape for buyers. While it's essential to stay informed about mortgage rates, buyers should also consider the overall market trends. Forecasters expect home prices to moderately rise, indicating that acting sooner, rather than later, might be prudent.

Furthermore, with the Federal Reserve's recent decisions influencing the market, potential buyers and refinancers should analyze their financial goals. The allure of a lower mortgage rate cannot be understated, yet borrowers must also focus on their long-term financial strategies and housing needs.

Key Forecasts for 2025

According to the National Association of REALTORS® and industry analyses, here are some expectations for mortgage rates in the coming years:

• The average mortgage rate could stabilize around 6.4% by the end of 2025.
• Home sales are projected to rise by 10% for new homes.
• Job growth will also contribute to a more robust economy, enhancing consumer confidence in purchasing homes.

Summary

Today's mortgage rates, declining as of May 31, 2025, represent a favorable opportunity for borrowers and homeowners considering refinancing. The slight dip in rates amidst an easing inflation context echoes broader economic trends. As individuals and families look to secure financing for homes, understanding the types of loans and the implications of current rates will be essential for informed decision-making. As the housing market evolves, staying aware of trends will benefit potential buyers and existing homeowners alike.