US Mortgage Rates Holding Steady on May 27th 2025
David Garner
FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate
📉 Today’s Mortgage Rates – May 27, 2025: Rates Hold Steady Just Below 7%
As of Tuesday, May 27, 2025, mortgage rates have held mostly steady in the aftermath of the Memorial Day weekend.
The average 30-year fixed mortgage rate remains at 6.90%, with the 15-year fixed rate sitting at 6.11%. While borrowers may be hoping for meaningful declines this year, economic uncertainty—particularly surrounding new tax legislation and inflation—continues to weigh on the market.
So, what does this all mean if you’re buying or refinancing in today’s market? Let’s take a closer look…
Related: US Homebuyers are Using This Simple Trick to Save Thousands in Mortgage Interest
📊 Snapshot: Current Mortgage and Refinance Rates
According to Zillow’s latest national averages:
🔹 Mortgage Purchase Rates
| Loan Type | Rate (%) |
|---|---|
| 30-Year Fixed | 6.90% |
| 20-Year Fixed | 6.72% |
| 15-Year Fixed | 6.11% |
| 5/1 ARM | 6.84% |
| 7/1 ARM | 7.30% |
| 30-Year VA | 6.49% |
| 15-Year VA | 6.49% |
| 5/1 VA ARM | 6.49% |
🔁 Refinance Rates
| Refinance Type | Rate (%) |
|---|---|
| 30-Year Fixed | 6.90% |
| 20-Year Fixed | 6.73% |
| 15-Year Fixed | 6.13% |
| 5/1 ARM | 7.60% |
| 7/1 ARM | 7.46% |
| 30-Year VA | 6.47% |
| 15-Year VA | 6.10% |
| 5/1 VA ARM | 6.36% |
Related: The Top 10 Most and Least Affordable Housing Markets in the US in 2025
🧭 What’s Holding Rates in Place?
While some expected mortgage rates to decline by mid-2025, a mix of legislative developments and inflationary pressures has kept them elevated.
🏛️ Legislative Factors
The recent passage of the GOP tax bill, which introduces substantial fiscal policy changes, is adding to market uncertainty. The projected increase in federal debt could create upward pressure on long-term bond yields—a key driver of mortgage rates.
📈 Inflation & Fed Policy
The Federal Reserve, meanwhile, has chosen to hold rates steady this month despite ongoing inflation concerns. This cautious approach suggests they’re waiting for clearer economic signals before making further moves—leaving mortgage rates in limbo.
According to the CME FedWatch tool, there’s a 94% probability that the Fed will keep the federal funds rate unchanged at its June meeting.
Related: Growing Housing Affordability Gap Creating Golden Opportunity for Investors
🏠 What This Means for Homebuyers
Let’s break it down with a quick example.
📌 Loan Scenario: $400,000 Mortgage
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30-Year Fixed at 6.90%
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Monthly payment (P&I): ~$2,634
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Total interest over 30 years: ~$548,384
-
-
15-Year Fixed at 6.11%
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Monthly payment (P&I): ~$3,399
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Total interest over 15 years: ~$211,864
-
The difference is striking. While the 15-year mortgage costs more per month, it slashes lifetime interest by over $336,000.
Related: 10-Year US Interest Rate Forecast from the Experts
🧠 Fixed vs. Adjustable: Which Loan Structure Makes Sense?
🔒 Fixed-Rate Mortgages
-
Lock in one rate for the life of the loan
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Easier for budgeting
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Ideal for buyers seeking long-term stability
🔁 Adjustable-Rate Mortgages (ARMs)
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Lower starting rate (but not in today’s market)
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Rate adjusts after the initial period
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Today’s 7/1 ARM is actually higher than the 30-year fixed
Bottom line: While ARMs have traditionally offered short-term savings, the spread between fixed and adjustable rates is narrow—or even inverted—in 2025. Many buyers are opting for fixed terms for predictability.
Related: Dave Ramseys Predictions for US Mortgage Rates in 2025
🔮 Will Mortgage Rates Fall Later in 2025?
Earlier forecasts suggested 2025 could bring rate relief as inflation cooled. Now, those expectations are being adjusted. With the Fed holding steady and new fiscal policy creating bond market volatility, meaningful drops may not materialize until late 2025 or 2026.
Industry Projections:
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Fannie Mae projects the 30-year fixed to average 6.1% by 2026
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Freddie Mac expects more buyers to re-enter the market now rather than gamble on lower rates
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Home sales are projected to rise to around 4.92 million in 2025, up from 2024 lows
This suggests that while rates aren’t ideal, today’s buyers are adapting to the “new normal.”
Related: Top 5 Riskiest US Property Markets in 2025
🌍 Economic Influences You Should Watch
Mortgage rates don’t exist in a vacuum. Key influencers include:
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Inflation: A major driver of Fed decisions
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Unemployment rates: A weaker labor market may prompt rate cuts
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Geopolitical stability: Global uncertainty drives investment in U.S. Treasuries, which affects mortgage rates
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Consumer confidence: Impacts buying behavior and demand for housing
Related: Hidden Costs of Buying Cheap Investment Property in the USA
📌 Final Thoughts: Stability, But for How Long?
Mortgage rates on May 27, 2025, remain stable but elevated, floating just under the 7% threshold. With no immediate rate relief in sight and policy uncertainty in the air, homebuyers are navigating a tricky—but not impossible—environment.
Key Takeaways:
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Rates are flat, but volatility remains possible
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Fed policy and inflation are critical to future movement
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Fixed loans offer more value than ARMs right now
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Buyers must focus on long-term affordability, not just today’s rate
📈 Tip: Use a mortgage calculator to explore how different rate scenarios impact your monthly payment and total interest.
FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate
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