US Mortgage Rates and Refinance Rates – May 28, 2025
David Garner
David GarnerFREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate
📉 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:
Lower bond yields: A sharp drop in Treasury yields has nudged mortgage rates down.
Inflation uncertainty: While inflation remains elevated, the lack of clear direction is prompting a more cautious tone from lenders.
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:
In early 2024, rates peaked near 7.25%
In the 1980s, mortgage rates exceeded 18%
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
✅ Lower monthly payments
❌ More interest over time
⏳ 15-Year Fixed
✅ Lower interest rate & faster equity
❌ Higher monthly burden
🔁 Adjustable-Rate Mortgages (ARMs)
✅ Lower initial rate
❌ 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:
Gradual declines through the second half of 2025 if inflation stabilizes
Fed rate cuts are still possible, though likely delayed
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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