Mortgage Rates Dip 10 Basis Points, 30-Year Jumbo Loans Fall 7 Basis Points

On May 20, 2025, the U.S. housing market witnessed a slight decrease in mortgage rates, signaling a shift in the financial landscape for homeowners and potential buyers. The average interest rate for a 30-year, fixed-rate conforming mortgage loan experienced a marginal decline, following a period of stability where rates had remained relatively unchanged.

The 15-year fixed refinance rates also decreased by 10 basis points from the previous week, bringing the average interest rate for 15-year refinances to 6.16%. This reduction offers borrowers an opportunity to secure lower rates on their mortgage loans, providing a more favorable environment for those looking to reduce their monthly payments or shorten their loan terms.

Jumbo 30-year mortgage rates also saw a significant decline, falling by 7 basis points to an average of 6.97%. This drop brings the rates back under the 7% mark, making financing more accessible and affordable for high-value properties. The decrease in jumbo mortgage rates is particularly beneficial for borrowers with larger loan amounts, as it provides relief in the current economic climate.

However, the 30-year fixed-rate mortgage refinance rates saw an increase of 0.30% from the previous week, reaching an average of 6.91%. This rise contrasts with the overall trend of decreasing rates, highlighting the volatility in the mortgage market. Despite this increase, the rates on 30-year refi loans have dropped for two consecutive days, indicating a potential stabilization in the market.

The fluctuations in mortgage rates are influenced by various economic factors, including inflation, employment data, and monetary policy decisions. According to analysts' forecasts, rates are expected to remain within the current range, between 6.5% and 7%, as economic indicators continue to shape the market dynamics. The slight dip in rates observed on May 20, 2025, reflects these broader economic trends and their impact on the housing market.