Mortgage Rates Surge to Highest Point Since July 2025 – What Homebuyers Need to Know

Mortgage rates for 30-year home loans have surged once again, reaching an average of 6.57% as of May 2025, the highest level seen in over two months. This upward momentum follows a recent dip below 6% last month, signaling a persistent rise across most mortgage categories.

Since mortgage rates can vary significantly among lenders, it remains crucial for prospective borrowers to shop around regularly and compare offers to find the most competitive rates available for their specific home loan needs.

Current Average Mortgage Rates for New Home Purchases

The average rate for 30-year fixed mortgages climbed by 14 basis points this Monday, settling at 6.57%. This marks the steepest rate since late July 2025. After bottoming out at a two-year low of 5.89% in mid-September, rates have increased by 68 basis points over recent months.

Although rates have risen, they remain below July’s peak of 7.08% and are still approximately 1.4 percentage points lower than the historic 23-year high of 8.01% recorded last October.

Meanwhile, 15-year mortgage rates also saw a notable increase, rising 16 basis points to an average of 5.61%. Despite this uptick, these rates remain nearly 1.5 percentage points below last fall’s historic peak of 7.08%, the highest since 2000.

Jumbo 30-year mortgage rates followed suit, increasing by 15 basis points to an average of 6.73%. This follows a recent low of 6.24% recorded in mid-September, the lowest since February 2023. Though historical jumbo rate data is limited before 2009, last fall’s 8.14% peak is considered the highest in over two decades.

Freddie Mac Weekly Mortgage Rate Update

Freddie Mac, a government-backed entity that purchases mortgage loans, reports a weekly average rate for 30-year mortgages. Last week’s average climbed 4 basis points to 6.12%, following the previous week’s 6.08%—the lowest weekly average since September 2022. In October, Freddie Mac’s average hit a 23-year record high of 7.79%.

It’s important to note that Freddie Mac’s weekly averages differ from daily averages reported elsewhere due to varied calculation methods and loan criteria, such as credit score requirements and down payments.

Use our Mortgage Calculator to estimate monthly payments tailored to your loan scenario.

Important Considerations

Advertised teaser mortgage rates often represent the most favorable rates available and may require upfront points or assume an ideal borrower profile with excellent credit and smaller loan amounts. Actual mortgage rates depend on individual financial factors including credit score and income, so your rate may differ from published averages.

What Drives Changes in Mortgage Rates?

Mortgage rates fluctuate based on a complex mix of 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 across different loan products

Because multiple elements influence rates simultaneously, pinpointing a single cause for changes is challenging.

During much of 2021, mortgage rates remained relatively low due to the Federal Reserve’s bond-buying program aimed at supporting the economy amid the pandemic. However, starting November 2021, the Fed began tapering these purchases, ending them by March 2022.

Following this, the Fed raised the federal funds rate aggressively through mid-2023 to combat inflation, indirectly pushing mortgage rates higher. Despite the fed funds rate and mortgage rates sometimes moving independently, the Fed's rapid rate hikes over 16 months—totaling 5.25 percentage points—influenced mortgage rates significantly.

After holding rates steady from July 2023, the Fed initiated its first rate cut on September 18, 2025, reducing rates by 0.50 percentage points, with further cuts anticipated through 2024 and 2025. The next Fed announcement is scheduled for November 7, 2025.

How We Monitor Mortgage Rates

The national and state mortgage rate averages presented are sourced from the Zillow Mortgage API, assuming an 80% loan-to-value ratio (20% down payment) and a credit score range of 680–739. These averages reflect typical borrower scenarios and may differ from promotional rates advertised elsewhere. © Zillow, Inc., 2024. Use subject to Zillow Terms of Use.

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