US Mortgage Rates and Refinance Rates – May 28, 2025
David Garner
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📉 Today’s Mortgage Rates – May 28, 2025: Rates Dip as Bond Yields Slide
Mortgage rates are showing a welcomed decline today, May 28, 2025, following a drop in U.S. bond yields. The national average for a 30-year fixed mortgage has edged down to 6.86%, offering a slight but meaningful reprieve for homebuyers and homeowners considering a refinance.
As financial markets adjust to shifting economic signals—including tariff speculation, inflation uncertainty, and a more dovish Federal Reserve stance—mortgage rates are reacting in real time. Here’s what buyers need to know.
Related: US Homebuyers are Using This Simple Trick to Save Thousands in Mortgage Interest
🏠 Today’s Average Mortgage Rates – May 28, 2025
| Loan Type | Rate (%) |
|---|---|
| 30-Year Fixed | 6.86 |
| 20-Year Fixed | 6.61 |
| 15-Year Fixed | 6.06 |
| 5/1 ARM | 7.04 |
| 7/1 ARM | 6.73 |
| 30-Year VA | 6.39 |
| 15-Year VA | 5.76 |
| 5/1 VA ARM | 6.42 |
📌 Source: Zillow national averages. Actual rates may vary depending on credit, location, and lender.
Related: Foreigners Win Big in US Housing Market
🔁 Current Refinance Rates
| Refinance Type | Rate (%) |
|---|---|
| 30-Year Fixed | 6.96 |
| 20-Year Fixed | 6.80 |
| 15-Year Fixed | 6.21 |
| 5/1 ARM | 7.33 |
| 7/1 ARM | 6.72 |
| 30-Year VA | 6.41 |
| 15-Year VA | 5.91 |
| 5/1 VA ARM | 6.22 |
Why is refinancing slightly more expensive? Lenders typically assign a premium to refinance loans due to increased risk. That’s why it’s important to compare your current rate and long-term homeownership plans before locking in a refinance.
Related: Top 5 Riskiest US Property Markets in 2025
💡 Why Mortgage Rates Are Dropping
Mortgage rates tend to follow the lead of 10-year Treasury bond yields—and recent declines in yields are giving lenders room to cut rates.
🔍 Key Drivers Behind the Drop:
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Lower bond yields: A sharp drop in Treasury yields has nudged mortgage rates down.
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Inflation uncertainty: While inflation remains elevated, the lack of clear direction is prompting a more cautious tone from lenders.
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Fed policy shift: The Federal Reserve has softened its stance on future rate hikes, contributing to lower borrowing costs.
Together, these trends point to a more accommodative lending environment—though risks remain.
Related: Local Market Expertise is Essential for Overseas Property Investors
📈 Rate Trends in Context: Then vs. Now
It’s easy to forget that just two years ago, mortgage rates were below 3%. Today’s 6.86% 30-year rate might feel high by comparison, but in historical terms, it’s not extreme. Consider:
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In early 2024, rates peaked near 7.25%
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In the 1980s, mortgage rates exceeded 18%
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Average rates between 2000–2020 hovered around 5–6%
Today’s environment reflects a more normalized post-pandemic economy, even if affordability remains stretched.
Related: The Top 10 Most and Least Affordable Housing Markets in the US in 2025
🧮 Should You Lock in a Rate Now?
Here’s how a $350,000 loan looks under today’s 30-year and 15-year rates:
| Term | Rate | Monthly P&I | Total Interest |
|---|---|---|---|
| 30-Year Fixed | 6.86% | ~$2,295 | ~$475,294 |
| 15-Year Fixed | 6.06% | ~$2,965 | ~$182,741 |
Shorter terms save you significantly in interest but come with higher monthly payments.
Related: 10-Year US Interest Rate Forecast from the Experts
🏦 Choosing the Right Mortgage Type
🔒 30-Year Fixed
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✅ Lower monthly payments
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❌ More interest over time
⏳ 15-Year Fixed
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✅ Lower interest rate & faster equity
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❌ Higher monthly burden
🔁 Adjustable-Rate Mortgages (ARMs)
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✅ Lower initial rate
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❌ Uncertainty after fixed period
While ARMs are typically attractive during rate peaks, current adjustable rates aren’t significantly lower than fixed options. For most borrowers, fixed-rate loans offer better long-term security.
Related: How to Get a Foreign National Mortgage Without a Visa or SSN
🔮 What’s Next for Mortgage Rates?
The outlook for mortgage rates remains cautiously optimistic.
Economists expect:
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Gradual declines through the second half of 2025 if inflation stabilizes
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Fed rate cuts are still possible, though likely delayed
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Market volatility may persist due to tariffs, fiscal policy, and global events
Fannie Mae forecasts rates to average around 6.3% by year-end, while Freddie Mac sees buyer demand picking up as more Americans adjust to the new normal.
Related: Dave Ramseys Predictions for US Mortgage Rates in 2025
✅ Final Thoughts: A Window of Opportunity?
Mortgage rates as of May 28, 2025, offer a modest break in what has been a turbulent year for borrowers. For buyers and homeowners ready to act, today’s lower rates could represent a window of opportunity before future economic developments nudge them higher again.
📌 Key Takeaway: If you’re buying or refinancing, now’s the time to shop around, get pre-approved, and explore options—including discount points or rate buydowns—to secure the best terms available.
Related: Real Estate Closing Costs in the USA for Foreign Property Investors
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