Understanding Mortgage Rates: Current Trends and Future Predictions

FILE-A home is listed for sale in Palo Alto, CA, U.S. (Michael Short/Bloomberg via Getty Images)

Mortgage rates are still stable after making a slight uptick despite unpredictability in the housing industry. This stability is a welcome relief for prospective homebuyers and current homeowners who have been navigating the ever-changing landscape of mortgage rates.

Freddie Mac reported in its Primary Mortgage Market Survey that the 30-year fixed-rate mortgage (FRM) increased this week to its highest level since February. This increase has sparked interest and concern among those looking to purchase or refinance a home.

What are the Current Mortgage Rates?

By the numbers:

The 30-year fixed-rate mortgage (FRM) averaged 6.89% as of May 29, 2025, up from last week when it averaged 6.86%. According to the Freddie Mac survey, at this time last year, the 30-year fixed-rate mortgage averaged 7.03%. This slight decrease from last year’s average is a positive trend for the housing market.

RELATED: Mortgage rates finally declining but may not go much lower

A 15-year fixed-rate mortgage averaged 6.03%, which is up from last week when it averaged 6.01%. A year ago, at this time, the 15-year FRM averaged 6.36%. These rates are crucial for homeowners who are considering refinancing their current mortgages or for those looking to purchase a new home.

Consumer Affairs reported that the analysis suggests that mortgage rates will fall between 6.7% and 7.1% through early July. Some projections indicate an average rate of 6.96% by mid-June, with potential spikes climbing to 7.17%. Understanding these projections can help individuals make informed decisions about their mortgage options.

Mortgage Rates May Change Based on Certain Factors

Why you should care:

Whether you’re a prospective homebuyer or current homeowner, there are several factors that might influence mortgage rates within the next six months. Consumer Affairs outlines the following key factors:

• Federal Reserve Policy: The Federal Reserve is maintaining a cautious approach on interest rates based on inflation and economic uncertainty. This cautious approach can impact mortgage rates, making it essential for individuals to stay informed about Federal Reserve decisions.
• Inflation Trends: Consumer Affairs reported that recent data shows a small decline in inflation to 2.3% year-over-year in April. However, tariff-related price spikes could impact future inflation readings, which in turn could affect mortgage rates.