Mortgage Refinance Rates Dip 5 Basis Points to 6.95%

On May 29, 2025, mortgage refinance rates saw a slight decrease, with the 30-year fixed refinance rate dropping to 6.95%. This decline follows a period of stability where the average rate for a 30-year fixed mortgage had hovered around 6.9% for the past week. Similarly, the 15-year fixed refinance rate averaged 5.88%, showing a comparable trend of minor fluctuations.

The recent dip in refinance rates aligns with a broader trend in the mortgage market, where 30-year new purchase mortgage rates also experienced a decrease. On May 28, 2025, the average rate for a 30-year fixed mortgage for new purchases fell by 6 basis points to 7.06%, down from 7.15% the previous day. This marks the second consecutive day of decline, with rates retreating from their highest levels since May 2024.

The overall trend in mortgage rates has been shaped by various factors, including the Federal Reserve's monetary policy and the bond market. The Fed's decision to maintain rates at its March 2025 meeting, coupled with expectations of limited rate cuts for the remainder of the year, has influenced the current rate environment. Analysts' forecasts for the coming week are varied, with 36% predicting an increase in rates, 43% expecting a decrease, and 21% anticipating no change.

The recent volatility in mortgage rates underscores the importance of closely monitoring the market for borrowers considering refinancing or purchasing a new home. While rates have eased from their peak levels, they remain significantly higher than the lows observed in 2020 and 2021. Borrowers should carefully assess their financial situation and consult with lenders to determine the optimal course of action in the current rate environment.