Mortgage Rates Have Increased Continuously for a Week Over a 30-Year Period
After bobbling around in an upper-6% zone, 30-year mortgage rates have experienced a five-day spike, pushing rates back over the 7% threshold. Currently, the average stands at 7.07%. Rates have also climbed for an assortment of mortgage types.
Since rates vary significantly across lenders, it's always clever to browse several options to secure your best mortgage rate and compare regularly, no matter the sort of home loan you're after.
Explore Today's Mortgage Rates - May 15, 2025## Today's New Purchase Mortgage Rate Averages
Rates on 30-year new purchase mortgages jumped 6 basis points yesterday, marking the fifth straight daily increase amounting to a 16-basis-point climb and a new average of 7.07%. That's only slightly cheaper than a mid-April peak of 7.14%, which was the priciest reading since May 2024.
Back in September, 30-year rates took a historic nosedive, plunging to a two-year low of 5.89%. Though today's rates are higher, they're vastly improved compared to late 2023, when rates skyrocketed to a 23-year high of 8.01%.
Rates on 15-year mortgages also rose, accumulating 4 basis points yesterday for a five-day gain of 17 basis points. With a current 6.14% average, this remains cheaper than the April 11 average of 6.31%, marking the highest 15-year reading in nearly a year. Despite this, it's almost a full point below October 2023's historic 7.08% peak, a 23-year maximum. Jumbo 30-year mortgages added 4 basis points as well, after a one-point dip the day prior. Wednesday's 7.04% average shows an improvement over the 7.15% reading four weeks ago, which was a 10-month high. By comparison, jumbo 30-year rates plummeted to 6.24% last fall, their lowest level in 19 months, while October 2023's 8.14% peak is estimated to have been the most expensive jumbo 30-year average in over 20 years.
The Weekly Freddie Mac Average
Every Thursday, Freddie Mac, a Federal government-sponsored purchaser of mortgage loans, releases a weekly average of 30-year mortgage rates. Last week's reading was static at 6.76%, after a two-week decline to 6.83%. Last September, the average sank as far as 6.08%. However, in October 2023, Freddie Mac's average saw a record surge, qualifying for a 23-year peak of 7.79%.
Freddie Mac's average diverges from what we provide for 30-year rates because Freddie Mac calculates a weekly average blending five previous days of rates. In contrast, our Investopedia 30-year average is a daily reading, offering a more accurate and timely reflection of rate movement. Moreover, the criteria governing the selection of loans (e.g., down payment size, credit score necessity, inclusion of discount points) differs between Freddie Mac's methodology and our own.
Calculate monthly payments for different loan scenarios with our Mortgage Calculator.
Important
The rates we display won't match the teaser rates you may come across online as these rates are specially selected to appear attractive versus the averages you see here. Teaser rates may involve upfront fees or are based on a superior-than-average credit score or for a smaller-than-typical loan. Your final rate will be contingent upon factors like your credit score, income, and so forth, so it may differ from the averages given here.
Your monthly mortgage payment will hinge on the home price, down payment, loan term, property taxes, homeowners insurance, and interest rate on the loan, which relies significantly on your credit score. Use the inputs below to get a sense of what your monthly mortgage payment might be.
click hereclick here## What Moves Mortgage Rates Up or Down?
Mortgage rates are orchestrated by a complicated interaction of macroeconomic, financial, and personal factors, including:
- Inflation: Higher inflation tends to result in higher mortgage rates, as lenders up rates to account for decreased purchasing power and ensure profit margins[1][3].
- Economic Growth: Economic indicators like GDP and employment rates can affect mortgage rates. A robust economy is often associated with higher rates because of increased demand for housing[3].
- Federal Reserve Policy: While the Fed doesn't directly govern mortgage rates, its actions involving the federal funds rate can shape the broader economy and investor expectations, which in turn influence mortgage rates[1][3].
- Bond Market Activity: Mortgage interest rates are correlated with bond rates, particularly the 10-year Treasury yield. When bond rates rise, mortgage rates often follow[3].
- Supply and Demand: When demand for mortgages is elevated, lenders may raise rates to manage their capital; alternatively, low demand might result in reduced rates to entice borrowers[3].
- Credit Score: A borrower's credit score plays a significant role in determining their mortgage rate. Better scores lead to more favorable rates[5].
- Loan Type and Terms: Different loan types (e.g., 15-year vs. 30-year) and terms can have differing interest rates[1].
- Down Payment and Loan Amount: The dimension of the down payment and the overall loan amount can guide the interest rate offered[3].
Acquainting yourself with these factors can equip borrowers to navigate the mortgage market successfully and secure the best possible rates.
- Given the current market trends, it might be advisable for individuals to consider exploring the world of personal-finance and learn more about how the fluctuations in mortgage rates can impact their future financial plans, such as investing in mortgage-backed tokens or Initial Coin Offerings (ICO) that could potentially benefit from favorable trading conditions.
- Despite the recent climb in 30-year mortgage rates, it remains essential for homebuyers to diligently compare rates from various financial institutions to ensure they secure the most competitive rate, which could have a significant impact on their overall personal-finance and long-term financial stability.
