Mortgage and refinance rates for May 22, 2025: Average rates tick higher as Congress debates details of tax bill

Average mortgage rates continue to seesaw as of Thursday, May 22, 2025, with the 30-year fixed benchmark still hovering under 7%. President Trump’s key tax bill, which would make permanent the tax deduction available for up to $750,000 in interest paid on an eligible mortgage, has yet to pass out of Congress. Continued debates and last-minute changes to details of the bill are likely to affect market trading — including bond yields, which are closely tied to mortgage rates.

If you’re shopping for a home this peak spring season, it’s best to focus on your long-term housing needs rather than short-term rate movements. Don’t wait to start shopping for a mortgage for a sense of what you can afford, comparing quotes across conventional, FHA, VA and other popular home loans and locking in the lowest rate you’re approved for.

The current average rate for a 30-year fixed mortgage is 6.94% for purchase and 6.94% for refinance — up 5 basis points from 6.89% for purchase and 1 basis point from 6.93% for refinance last Thursday, according to the latest data from Bankrate. Rates on a 15-year mortgage stand at an average 6.12% for purchase and 6.18% for refinance — up 6 basis points from 6.06% for purchase and no change from 6.18% for refinance this time last week. The average rate on a 30-year fixed jumbo mortgage is 6.95%.

⭐️ Must read: 6 ways to get the lowest rate on your next mortgage right now

Purchase rates for Thursday, May 22, 2025

Refinance rates for Thursday, May 22, 2025

Source: Bankrate lender survey

Mortgage rates are determined by many factors that include inflation rates, economic conditions, housing market trends and the Federal Reserve’s target interest rate. Lenders also consider your personal credit score, the amount available for your down payment, the property you’re interested in and other terms of the loan you’re requesting, like 30-year or 15-year offers.

Because rates can fluctuate daily, it’s best to lock in a mortgage rate when you’re comfortable with the overall conditions of your mortgage or home loan.

Dig deeper: How to shop for a mortgage: A step-by-step guide for smart homebuyers in 2025

Freddie Mac weekly mortgage report: Rates remain flat

Freddie Mac reports an average 6.81% for a 30-year fixed-rate mortgage, up 5 basis points from last week’s average 6.76%, according to its weekly Prime Mortgage Market Survey of nationwide lenders published on May 15, 2025. The fixed rate for a 15-year mortgage is 5.92%, up 3 basis points from last week’s average 5.89%. These figures are lower compared to a year ago, when rates averaged 7.02% for a 30-year term and 6.28% for a 15-year term.

“The 30-year fixed-rate mortgage remained below the 7% threshold for the 17th consecutive week,” says Sam Khater, Freddie Mac’s chief economist, of the latest data. “Stable mortgage rates coupled with moderately rising inventory are attracting homebuyers into the market, with purchase application activity up 18% from last year.”

Freddie Mac updates its Prime Mortgage Market Survey data weekly on Thursdays at noon ET.

4 top factors that affect your mortgage rate

The difference of even half a percentage point on your interest rate can save you hundreds of dollars a month and thousands of dollars over the life of your mortgage, but the mortgage rate you’re ultimately offered depends on the mortgage you’re interested in, payments you’re willing to pay up front and your overall financial health.

• Your credit score. Knowing your credit score can help you shop around for lenders you’re likely to get approval through, as well as understand the type of mortgage for your lifestyle and income. The best mortgage rates go to borrowers with good to excellent credit — typically a FICO credit score of at least 670 — though even with fair credit, you may be able to find a mortgage offering decent rates.

• Your down payment. The more money you can put down toward your home, the better it benefits your interest rate. Paying at least 20% of your home’s purchase price up front generally results in a lower interest rate — and you can avoid mortgage insurance, which increases your total cost.

• Your loan term. While the 30-year mortgage remains a popular way for Americans to purchase homes, you can find terms of 20 years, 15 years and 10 years. Shorter loan terms usually come with lower interest rates, though with higher monthly payments. Longer mortgage terms can result in smaller monthly payments, though you’ll pay higher total interest over the life of your loan.

• Interest rate type. Mortgage rates come with two basic types of rates — fixed and variable. Fixed-rate mortgages offer a consistent interest rate over the life of your loan, whereas adjustable-rate mortgages (ARMs) often start with a lower fixed rate for an agreed-on time and then adjust to a variable rate based on market conditions for the remainder of your term. Choosing between these two rates depends on your financial goals and tolerance for risk.

Prequalification vs. preapproval: What’s the difference?

Both processes help you determine how much house you can afford, though each in a different way. Think of prequalification as a quick peek into your wallet: It gives you a rough idea of what you can borrow based on the most basic information only. Preapproval, on the other hand, is when a lender takes a deeper dive into your finances to give you a more precise and reliable estimate of how much they’re willing to lend you. Learn more about these important steps of the homebuying journey in our comprehensive guide to prequalification and preapproval.

Dig deeper: How much does a change in mortgage rates actually matter?

Mortgage rates in the news

Mortgage lenders keep a close eye on the benchmark federal funds target interest rate set by the Federal Reserve, the U.S.’s central bank. Called the Fed rate, it’s the benchmark that affects rates on deposit accounts, loans and other financial products. Typically, as the fed rate rises, so do APYs on savings products like CDs, high-yield savings accounts, money market accounts and home equity loans. Mortgage rates don’t follow the Fed rate as closely, but they do reflect the same elements the Fed evaluates when making decisions on the benchmark — especially inflation — which means as the Fed rate increases, mortgage rates also tend to rise.

After increasing the target interest rate 11 times from March 2022 to July 2023 in an effort to combat the highest inflation in four decades coming out of the pandemic, the Federal Reserve announced a highly anticipated half-point cut to its federal funds target interest rate on September 18, followed by two additional quarter-point cuts after its November and December policy meetings.

May 7, 2025: Fed pauses rate cuts for third consecutive time

At the conclusion of its third rate-setting policy meeting of 2025 on May 7, 2025, the Federal Reserve announced it was leaving the federal funds target interest rate unchanged at 4.25% to 4.50% for a third time after three cuts in 2024: a jumbo half point in September 2024, followed by quarter-point cuts in November and December.

In its post-meeting statement, the Federal Reserve said it was maintaining the target range in its continuing effort to achieve “maximum employment” and tame inflation to 2%.

“The unemployment rate has stabilized at a low level in recent months, and labor market conditions remain solid,” the Fed said in its statement, noting, “Uncertainty around the economic outlook has increased.”

“In considering the extent and timing of additional adjustments,” the Fed said it would “carefully assess incoming data, the evolving outlook, and the balance of risks.”

After March’s meeting, the Fed updated its rate projections to just two quarter-point cuts in 2025, seeing slower growth and higher inflation ahead.

What to expect at the Fed’s next policy meeting: June 17–18, 2025

It’s too early to predict what the Federal Reserve will decide at its next policy meeting on June 17 and June 18, 2025, though despite the Fed hinting at future rate cuts this year, it’s unlikely we’ll see another quarter-point cut in June. The CME FedWatch Tool, which measures market expectations for Fed fund rate changes, already predicts a more than 90% chance the Fed keeps rates where they are.

Economists are keeping a close eye on inflation and labor reports amid speculation as to timing of future cuts to the Fed rate, with data indicating sticky inflation from a peak of 9.1% in June 2022 to rates that have ranged from 2.5% and 4% since May 2023.

Fresh jobs data released on May 2 from the Bureau of Labor Services showed employers adding 177,000 jobs to payrolls in April — surpassing projections yet lower than the revised 185,000 roles added in March. Unemployment was unchanged at 4.2%.

The consumer price index released on May 13 showed the annual inflation rate easing to 2.3% in April from 2.4% reported in March — its lowest annual rate since February 2021, yet still higher than the Fed’s 2% goal. Overall prices rose 0.2% for April after falling 0.1% in the previous month, with economists warning the larger impacts of tariff policies won’t be clear until later in the year. The producer price index released on May 15 showed wholesale prices falling 0.5% in April, bringing down the increase in wholesale prices for the year ending last month to 2.4%. Core producer prices, which excludes more variable items like foods, energy and trade services, edged down 0.1% — the first decline since April 2020.

At a conference on May 15, Federal Reserve Chair Jerome Powell warned of future inflation swings, saying, “we may be entering a period of more frequent, and potentially more persistent, supply shocks,” which will prove a “difficult challenge for the economy and for central banks.”

The Powell-led rate-setting panel will announce a rate decision at the conclusion of its meeting on Wednesday, June 18, 2025, at 2 p.m. ET.

Dig deeper: When’s the next Federal Reserve meeting? What to expect — and how it affects your finances

Other stories in our mortgages and homebuying series

• How to shop for a mortgage: A guide for homebuyers in 2025

• 4 popular mortgage loans for homebuyers: Conventional, FHA, VA and jumbo loans

• When should you refinance your mortgage?

• What is a mortgage rate lock?

• How to refinance your ARM into a fixed-rate mortgage

Frequently asked questions about mortgage rates

Learn more in these common questions about how mortgages work when narrowing down the best for your budget and financial goals. And take a look at our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

What are mortgage lenders?

Lenders are financial institutions that loan money to homebuyers. A lender is different from a loan servicer, which typically handles the operational tasks of your loan, like processing payments, talking directly with borrowers and sending monthly statements.

What does it mean to refinance a mortgage?

Refinancing is a process of trading in your current mortgage to another lender for lower rates and better terms than your current loan. With a refinance, the new lender pays off your old mortgage and you then pay your monthly statements from the new lender. Learn more about how the process works in our guide to timing your refinancing.

I’ve owned a home in the past. Can I still qualify for homebuyer assistance?

Yes. While many homebuyer assistance programs are for first-time buyers, both the IRS and the Department of Housing and Urban Development (HUD) consider you a first-time homebuyer if neither you nor your spouse has owned a principal residence within the past three years. Learn more about programs that might be available to you — even if you’ve already owned a home — in our guide to homebuyer assistance.

What is an adjustable-rate mortgage?

An adjustable-rate mortgage — commonly called an ARM — is a type of home loan with a variable rate. Unlike a fixed-rate mortgage, which locks in an interest rate and predictable payments that apply over the full loan term, an ARM starts at an initial fixed rate for a period of three years or longer, after which it adjusts to a higher rate and then further adjusts periodically over the remaining life of the loan.

For a 5/1 adjustable-rate mortgage, the first number indicates the number of years at the fixed rate — or five years — and the second number indicates the rate at which the mortgage rate readjusts after — in this case, each year or annually. Learn more about how to convert your ARM to a fixed-rate mortgage in our guide to refinancing your adjustable-rate mortgage.

Can I negotiate my mortgage rate?

It’s not likely — lenders consider the market conditions and other financial factors when determining rates. You can, however, ask about how you can reduce costs in other ways when comparing mortgage lenders. For instance, many lenders offer lower rates in exchange for “mortgage points” — upfront fees you pay to your lender. A mortgage point could cost 1% of your mortgage amount, which means about $5,000 on a $500,000 home loan, with each point lowering your interest rate by about 0.25%, depending on your lender and loan. Learn more in our guide to getting the lowest rate on your next mortgage.

What happens to my mortgage after I die?

Your home’s mortgage is treated a little differently from your other debt, which is typically settled through your estate before any assets are passed along to your heirs. Most mortgages aren’t transferable, which means the home must be paid off in full to transfer the property title.

But that also means only those who signed on to the loan can be held liable for a mortgage. Learn more about what happens to your mortgage after death.

I already own a home. Can I borrow against my home’s equity to cover a high-dollar or unexpected cost?

Yes. If it’s cash you’re after to pay for home renovations, pay off high-interest credit card debt or cover an emergency, tapping into your home’s value is a way to unlock lower rates without refinancing — and without losing your low-rate mortgage. You typically need good to excellent credit and to have built enough equity in your home. Learn how to get equity out of your home as rates come down.

Editor’s note: Rates shown are as of Thursday, May 22, 2025, at 6 a.m. ET. APYs and promotional rates for some products can vary by region and are subject to change.

Sources

• Mortgage Industry Insights, Bankrate. Accessed May 22, 2025.

• Primary Mortgage Market Survey, Freddie Mac. Accessed May 16, 2025.

• Employment Situation Summary, U.S. Bureau of Labor and Statistics. Accessed May 5, 2025.

• Consumer Price Index Summary, U.S. Bureau of Labor and Statistics. Accessed May 14, 2025.

• Producer Price Index News Release summary, U.S. Bureau of Labor and Statistics. Accessed May 16, 2025.

• CME FedWatch Tool, CME Group. Accessed May 22, 2025.