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Mortgage rates this week
Mortgage rates continued to drift lower in the week ending May 23 in the absence of market-moving news.
The 30-year fixed-rate mortgage averaged 6.87% APR, down 11 basis points from the previous week's average, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point.
The 15-year fixed-rate mortgage averaged 6.13% APR, down eight basis points from the previous week's average.
The 5-year adjustable-rate mortgage averaged 7.75% APR, down 15 basis points from the previous week's average.
Rates have dropped three weeks in a row, starting in the aftermath of a so-so employment report for April. That was followed by a predictable inflation report and then by the release of minutes from the most recent Federal Reserve meeting, which contained no surprises. There has been no data that would jolt mortgage rates in the other direction.
Since the beginning of the month, fixed-rate mortgages have fallen almost half a percentage point. A more significant drop might have to await the first Fed rate cut, which isn't expected to happen until fall.
Mortgage loans from our partners
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Mortgage loans from our partners
on New American Funding
New American Funding
on New American Funding
May mortgage rate forecast
Mortgage rates could remain around 7% in May as inflation resists the Federal Reserve's efforts to bring it under control.
What other forecasters predict
Fannie Mae, the Mortgage Bankers Association and the National Association of Realtors all predict that mortgage rates will fall over the next 12 months. Their forecasts have the 30-year fixed-rate mortgage dropping to below 6.5% in the first quarter of 2025, compared with an average of 6.75% in the first quarter of this year.
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