Mortgage Rates Rise 1 Basis Point to 7.02% Despite Inflation Relief

On May 19, 2025, the average refinance rate for a 30-year, fixed-rate home loan was 7.01%, marking a slight increase from the previous day's rate of 7.01%. This upward trend continued with the national average 30-year fixed mortgage rate climbing 1 basis point to 7.02%. Despite recent indications of lower inflation and tariff relief, which initially suggested a potential decrease in mortgage rates, the rates have remained relatively stable after the recent rise, indicating a consistent trend in the mortgage market.

The current mortgage rates for various types of loans reflect this broader market condition. For example, the 30-year fixed-rate mortgage is available at rates ranging from 6.625% to 6.821%, while the 30-year fixed-rate first-time home buyer mortgage is offered at rates between 6.375% and 6.801%. These rates highlight the impact of recent economic factors on the housing market, where homebuyers are facing higher interest rates, which can significantly affect their purchasing power and the overall affordability of homes. For instance, a growing family considering a home purchase between $610,000 and $640,000 would be looking at a 6.9% interest rate, underscoring the financial implications of the current mortgage environment.

The national average 30-year fixed mortgage APR on May 17, 2025, was 7.072%, further emphasizing the upward trend in mortgage rates. This trend is likely to continue as economic factors such as inflation and tariff policies play a crucial role in shaping the mortgage market. The steady rise in mortgage rates has implications for both homebuyers and the broader real estate market, as higher interest rates can deter potential buyers and slow down the housing market's growth. However, the current rates also present an opportunity for homeowners to refinance their existing mortgages at more favorable terms, potentially saving them money in the long run. The mortgage market's stability and the consistent trend in rates suggest that homebuyers and homeowners should carefully consider their options and seek professional advice to navigate the current mortgage environment effectively.