Today, on Memorial Day 2025, current mortgage interest rates are showing a slight decrease. According to the latest data from Zillow, the average 30-year fixed mortgage rate has dropped by three basis points to 6.89%, while the 15-year fixed interest rate has increased by one basis point to 6.11%.
The bond market has been closed over the holiday weekend, causing rates to fluctuate slightly in response to retail mortgage rate demand. Once the bond market reopens this week, it will be interesting to see how it reacts to last week’s volatility. Concerns about tariffs and the growing national debt have been pushing bond yields higher, which is unusual in times of uncertainty where typically there is a “flight to safety” towards fixed income investments.
Here are the current mortgage rates, based on the most recent Zillow data:
– 30-year fixed: 6.89%
– 20-year fixed: 6.62%
– 15-year fixed: 6.11%
– 5/1 ARM: 6.89%
– 7/1 ARM: 7.16%
– 30-year VA: 6.50%
– 15-year VA: 5.94%
– 5/1 VA: 6.43%
It’s important to note that these rates are national averages and are rounded to the nearest hundredth. Mortgage refinance rates tend to be slightly higher than purchase rates, so keep that in mind when considering your options.
If you’re looking to refinance, here are the current mortgage refinance rates according to Zillow:
– 30-year fixed: 6.91%
– 20-year fixed: 6.60%
– 15-year fixed: 6.12%
– 5/1 ARM: 7.36%
– 7/1 ARM: 7.52%
– 30-year VA: 6.46%
– 15-year VA: 6.00%
– 5/1 VA: 6.40%
When deciding between a 15-year and 30-year mortgage, it’s essential to consider factors such as interest rates, monthly payments, and total interest paid over the life of the loan. While a 15-year mortgage may come with a lower interest rate and shorter payoff period, it also means higher monthly payments compared to a 30-year term.
Adjustable-rate mortgages (ARMs) can offer lower initial rates, but there is a risk of rates increasing once the introductory period ends. It’s crucial to shop around for the best lenders and rates before committing to a fixed or adjustable mortgage rate.
Mortgage lenders typically offer the lowest rates to borrowers with higher down payments, excellent credit scores, and low debt-to-income ratios. Consider saving more, improving your credit score, or paying down debt to secure a lower rate.
Overall, mortgage rates are expected to remain relatively stable in 2025, with economists closely monitoring factors like inflation and tariff policies. It’s always wise to stay informed and consult with a financial advisor before making any significant financial decisions.
