As of May 13, 2025, mortgage rates in the United States have reached new highs, making it harder for people to afford homes. The average interest rate for a 30-year fixed mortgage is now 6.88%, while a 15-year fixed mortgage is at 6.11%. Rates have been steadily rising due to ongoing inflation, worries over possible global trade conflicts, and cautious moves by the Federal Reserve. Many hoped for lower rates, but the Fed decided earlier this month to keep their own benchmark rate steady, indicating that high inflation is still a major issue. Combined with expensive homes and limited properties available for sale, high mortgage rates are expected to remain between 6.5% and 7% for some time, making buying a home increasingly challenging for many Americans.

Mortgage rates have continued rising this month, reaching their highest levels in years. Right now, the average interest rate for a 30-year fixed mortgage is 6.88%, and a 15-year fixed mortgage has increased to 6.11%. Adjustable-rate mortgages (ARMs) are even higher, with the 5-year ARM rate now averaging 7.69%. Experts suggest these rising rates are due to ongoing economic uncertainty, including high inflation, global trade tensions, and concerns over a possible recession. Although the economy faces these challenges, the Federal Reserve decided to keep interest rates unchanged at its recent May 7th meeting, signaling caution and a wait-and-see strategy.

Mortgage rates in May 2025 continue to fluctuate significantly, with the average 30-year fixed rate nearing 7%, causing uncertainty for many homebuyers. Despite predictions that rates would drop, the Federal Reserve has decided not to lower interest rates due to concerns about ongoing inflation and uncertain global economic conditions. This decision means higher borrowing costs may stay around longer, making home purchases more expensive and prompting buyers to carefully consider their financial situations before committing to a mortgage.