Mortgage Rates Hit Six-Month Low with Continued Decline
Discover the latest drop in mortgage rates, reaching their lowest point in six months, and learn how this trend impacts homebuyers and the housing market today.
Mortgage rates for 30-year fixed loans have declined for the fifth consecutive day, reaching 6.49%—the lowest level since early February. This continued downward trend follows recent historic lows, signaling a favorable environment for prospective homeowners.
After a steady decrease earlier in the week, Thursday's data confirms that mortgage rates are experiencing a notable dip. Other mortgage products, including 15-year and jumbo loans, also saw significant rate reductions, making borrowing more accessible across various loan types.
Given the wide variation in rates offered by different lenders, it's crucial for homebuyers to shop around and compare mortgage options regularly to secure the best deal.
Current Mortgage Rate Averages as of May 9, 2025
The average 30-year fixed mortgage rate dropped 12 basis points to 6.49%, matching the lowest rate recorded since February 1. This marks a 59 basis point decrease from the 7.08% peak seen on July 1 last year.
While today's rate is slightly higher than the 6.36% rate from early February, it remains significantly below the historic 23-year high of 8.01% set in October.
Rates for 15-year fixed mortgages also fell by 15 basis points to 5.58%, hitting their lowest point since February 1 and well below last fall’s peak of 7.08%. Meanwhile, the 10-year fixed rate dropped by 0.2% to 5.58%, reversing gains from the previous day.
Jumbo 30-year mortgage rates declined by 8 basis points to 6.79%, the lowest since March and considerably below the May high of 7.30%. Historical data suggests the previous peak of 8.14% last fall was the highest jumbo rate in over two decades.
Weekly Freddie Mac Rate Update
Freddie Mac’s weekly average for 30-year mortgages decreased by 5 basis points to 6.73%. This figure differs from daily averages as it represents a blend of rates over five days, providing a broader perspective on market trends.
For personalized insights, use our Mortgage Calculator to estimate monthly payments based on various loan scenarios.
Important Considerations
Advertised teaser rates often do not reflect the averages reported here, as they may require upfront points or assume ideal borrower qualifications. Your actual rate will depend on your credit score, income, and other factors.
Factors Influencing Mortgage Rate Fluctuations
Mortgage rates are shaped by multiple factors, including:
- Movements in the bond market, especially 10-year Treasury yields
- Federal Reserve monetary policies, particularly bond purchases and government-backed mortgage funding
- Competition among lenders and various loan products
The interplay of these elements makes it challenging to pinpoint a single cause for rate changes.
In 2021, mortgage rates remained relatively low due to the Federal Reserve’s bond-buying programs responding to pandemic-related economic challenges. However, starting November 2021, the Fed gradually reduced these purchases, ending in March 2022.
Between then and mid-2023, the Fed raised the federal funds rate aggressively to combat inflation, indirectly pushing mortgage rates higher. Despite holding rates steady since July 2023, inflation remains above the Fed's 2% target, influencing future rate decisions.
The Fed is scheduled for three more meetings this year, with the next on September 18.
How We Monitor Mortgage Rates
Our mortgage rate averages are sourced from the Zillow Mortgage API, assuming an 80% loan-to-value ratio and a credit score between 680 and 739. These figures provide realistic expectations for borrowers, differing from promotional rates.
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