US Mortgage and Refinance Rates May 31st 2025 – Rates Inch Lower
David Garner
🏠 Today’s Mortgage Rates – May 31, 2025: Rates Go Down for Homebuyers 📉
As of May 31, 2025, mortgage rates have decreased, giving both homebuyers and homeowners a welcome opportunity to lock in better financing terms. The 30-year fixed rate dropped to 6.84%, and the 15-year fixed slid below 6% to 5.99%. This shift reflects easing inflation and a stable economic outlook, with the Federal Reserve likely holding off on short-term rate cuts until September.
📌 Key Takeaways
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🔻 Rates Dip: Mortgage rates are lower than earlier this week
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📉 30-Year Fixed: 6.84%
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📉 15-Year Fixed: 5.99%
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🔁 Refinance Rates Down Too – Good time for homeowners to explore
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🏘️ Market Conditions: Competitive, but inflation shows signs of easing
🧮 Current Mortgage Rates (May 31, 2025)
| 💼 Loan Type | 📊 Rate (%) |
|---|---|
| 30-Year Fixed | 6.84 |
| 20-Year Fixed | 6.54 |
| 15-Year Fixed | 5.99 |
| 5/1 Adjustable (ARM) | 7.01 |
| 7/1 Adjustable (ARM) | 7.11 |
| 30-Year VA | 6.36 |
| 15-Year VA | 5.71 |
| 5/1 VA | 6.37 |
📍 Rates shown are national averages, rounded to the nearest hundredth.
🔁 Current Refinance Rates
| 💼 Loan Type | 📊 Rate (%) |
|---|---|
| 30-Year Fixed | 6.90 |
| 20-Year Fixed | 6.53 |
| 15-Year Fixed | 6.15 |
| 5/1 Adjustable (ARM) | 7.43 |
| 7/1 Adjustable (ARM) | 7.24 |
| 30-Year VA | 6.38 |
| 15-Year VA | 5.84 |
| 5/1 VA | 6.19 |
💬 Tip: If you locked in a higher rate in recent years, this could be a smart time to refinance.
📉 Why Are Rates Falling?
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💡 Inflation: Fed’s preferred measures are cooling
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📈 10-Year Treasury Yield: A key benchmark that remains stable
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🧠 Market Sentiment: Optimism around job growth and moderated home prices
🏠 Mortgage Rate Types Explained
🔒 Fixed-Rate Mortgages:
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30-Year Fixed: Long-term stability, higher interest over time
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15-Year Fixed: Lower interest, faster payoff
🔁 Adjustable-Rate Mortgages (ARMs):
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5/1 ARM: Fixed for 5 years, then adjusts annually
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7/1 ARM: Fixed for 7 years, then adjusts
📉 ARMs offer lower initial rates, but carry future risk
💡 Refinance Outlook: Is Now the Right Time?
Yes — for many! Lower rates = lower payments.
But remember to weigh costs like closing fees and lender charges.
🏘️ Housing Market Snapshot: May 2025
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🏡 Home prices are stabilizing after pandemic-era spikes
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📈 Demand is rising, with existing home sales expected to increase
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📅 Acting sooner may be wise as prices and demand creep upward
🔮 Key Forecasts for 2025
📊 According to NAR and other sources:
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📉 Average mortgage rate may settle around 6.4% by year-end
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🧱 New home sales projected to increase 10%
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💼 Job growth is supporting buyer confidence
✅ Summary
Mortgage rates are down as of May 31, 2025, giving borrowers a chance to lock in better deals. Whether you’re buying your first home, refinancing, or exploring the market, these conditions are promising. Understanding your options—fixed vs. ARM, purchase vs. refi—is essential. Stay informed, and make your move when the numbers align with your goals.
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