Mortgage Rates Surge in 2025: Biggest One-Day Jump to 6.78% - May Update

After a gradual climb over the past week, 30-year mortgage rates skyrocketed on Thursday, hitting 6.78%, marking the highest level in three weeks. This upward movement was seen across nearly all mortgage categories.

Mortgage rates can vary significantly between lenders, so it's essential to shop around and regularly compare rates regardless of the loan type you are considering.

Current Mortgage Rate Averages - May 9, 2025

The average rate for 30-year new purchase mortgages surged by 12 basis points on Thursday, reaching a national average of 6.78%. This is over a quarter percentage point higher than last week's 6.50%, which was the most affordable rate seen in over four months.

In January 2025, the 30-year average peaked at 7.13%, the highest this year, so today's rates are still notably better than earlier in the year. They remain about 1.25 percentage points below the historic 23-year peak of 8.01% recorded in October 2023.

Last September, rates dropped to a two-year low of 5.89% before climbing nearly 1.25 percentage points over the following three months.

Rates for 15-year mortgages also rose by 12 basis points to an average of 5.90%, which is 30 basis points higher than their recent four-month low. Although elevated, this rate is still nearly 1.2 percentage points lower than the October 2023 peak of 7.08%, the highest since 2000.

Jumbo 30-year mortgage rates increased by 9 basis points to 6.82%. Last fall, jumbo rates fell to a 19-month low of 6.24%. The October 2023 peak of 8.14% remains the highest jumbo mortgage rate in over two decades.

Weekly Freddie Mac Mortgage Rate Average

Freddie Mac releases its weekly 30-year mortgage rate average every Thursday. The latest figure showed a slight increase of 2 basis points to 6.65%. In September 2024, this average dipped to 6.08%, while October 2023 saw a historic 23-year high of 7.79%.

Note that Freddie Mac’s weekly average differs from daily averages reported elsewhere due to its calculation method and loan inclusion criteria.

Use our Mortgage Calculator to estimate your monthly payments based on different loan scenarios.

Important Considerations

Published rates often differ from advertised teaser rates, which are typically the most attractive offers requiring upfront points or based on ideal borrower profiles. Your actual rate will depend on your credit score, income, and other factors.

What Influences Mortgage Rate Fluctuations?

Mortgage rates fluctuate due to a mix of macroeconomic and industry-specific factors, including:

• Movements in the bond market, particularly 10-year Treasury yields
• The Federal Reserve's monetary policies, including bond purchases and mortgage funding
• Competition among mortgage lenders and loan types

Often, multiple factors interact simultaneously, making it challenging to pinpoint a single cause for rate changes.

During much of 2021, mortgage rates remained low largely due to the Federal Reserve’s bond-buying programs responding to pandemic-related economic challenges. This policy significantly influences mortgage rates.

Starting in November 2021, the Fed tapered bond purchases, ending them by March 2022. From then until July 2023, the Fed raised federal funds rates aggressively to combat high inflation, indirectly pushing mortgage rates higher despite the fed funds rate not directly setting mortgage rates.

After holding rates steady for nearly 14 months, the Fed initiated rate cuts in late 2024 but maintained steady rates in early 2025. Forecasts suggest limited rate cuts in 2025, with several rate-hold decisions expected.

How We Monitor Mortgage Rates

Our national and state mortgage rate averages come from the Zillow Mortgage API, based on an 80% loan-to-value ratio and credit scores between 680 and 739. These averages reflect typical borrower experiences and may differ from advertised teaser rates. © Zillow, Inc., 2025. Usage subject to Zillow Terms of Use.

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