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📈 Today’s Mortgage Rates – May 29, 2025: Small Increase Amid Economic Uncertainty

As of May 29, 2025, mortgage rates have edged slightly higher, continuing a recent trend shaped by economic uncertainty. With average rates ticking up across most loan types, prospective homebuyers and refinancers should keep a close eye on market movements and policy shifts that may impact borrowing costs.

🔹 Key Takeaways:

• ⬆️ 30-Year Fixed Rate rose to 6.88%
• ⬆️ 15-Year Fixed Rate now sits at 6.07%
• ⬆️ Refinance rates are mirroring purchase rates
• ⚖️ Economic uncertainty from tariffs and the proposed tax bill are key influencers

💲 Current Purchase Mortgage Rates (as of May 29, 2025)

🏠 Current Refinance Rates

Related: Dave Ramseys Predictions for US Mortgage Rates in 2025

🌎 Economic Factors Driving Today’s Rates

• Tariff discussions and rising inflation concerns are spooking investors
• Bond yields are trending up, leading mortgage rates to follow
• Speculation around the GOP tax bill and its long-term deficit impact is fuelling inflationary fears
• Consumer confidence remains fragile, adding volatility to rate forecasts

❓ Understanding Your Mortgage Options

💶 Fixed-Rate Mortgages

• Predictable payments over 15 or 30 years
• Ideal for those seeking stability and long-term budgeting

🌐 Adjustable-Rate Mortgages (ARMs)

• Lower initial rates, which adjust annually after the fixed period
• Best for short-term owners or those expecting rate declines

💳 Monthly Payments: What to Expect

• Early payments on a mortgage are interest-heavy
• Over time, the principal portion increases
• The loan term and rate greatly influence your monthly burden

🔄 30-Year vs. 15-Year Loans

• 30-Year: Lower monthly payments, more interest over time
• 15-Year: Higher payments, but less interest and faster equity growth

📈 Today’s Market Dynamics

• Inventory is improving, but high rates limit affordability
• Some homeowners are rate-locked, unwilling to sell properties tied to ultra-low mortgage rates from 2020-2021
• Refinance demand is mixed: up YoY but down WoW due to rate volatility

🤞 What the Future Might Hold

• Fannie Mae forecasts rates could stabilize near 6.1% by year-end
• Any movement in tariffs, fiscal policy, or inflation will shift the trajectory
• Borrowers should monitor macro trends and act quickly during rate dips

🤔 FAQs

❓ What Bank Offers the Lowest Rates?

• Depends on your profile, but top lenders include Bank of America, Citibank, and local credit unions. Always shop around.

❓ Is 2.75% Still Possible?

• Very unlikely today. That was a pandemic-era rate. If you see it, it may be via loan assumptions or seller financing.

❓ What Was the Lowest-Ever Mortgage Rate?

• 2.65% in January 2021 (30-Year Fixed, Freddie Mac).

❓ When Should I Refinance?

• Generally when the new rate is 1-2% lower than your current rate. Also consider your break-even point and loan term.

📊 Summary

As May closes, today’s slight mortgage rate uptick underscores how sensitive the market is to economic policy and investor sentiment.

Borrowers navigating this environment must balance timing, affordability, and risk tolerance. Whether buying or refinancing, staying informed and acting decisively remains the best strategy for 2025.

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