Mortgage Interest Rates Forecast

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Updated · 1 min read
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Written by Holden Lewis
Senior Writer/Spokesperson
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Editor & Content Strategist

Mortgage rates this week

Mortgage rates dropped in the week ending May 1 as financial markets grew more confident that the Federal Reserve will cut short-term interest rates in June.

  • The 30-year fixed-rate mortgage averaged 6.87% APR, down 13 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% APR, down 18 basis points from the previous week's average.

  • The 5-year adjustable-rate mortgage averaged 7.22% APR, down five basis points from the previous week's average.

According to the CME FedWatch tool, the odds of a Fed rate cut at the June 17-18 meeting grew more favorable over the last week. A reduction of one-quarter of a percentage point is now seen as the most likely outcome.

Mortgage loans from our partners

NBKC - PURCHASE logo
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on NBKC

NBKC

4.5

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NBKC - PURCHASE logo

4.5

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620

Min. down payment 
3%

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on NBKC

New American Funding - PURCHASE logo
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on New American Funding

New American Funding

4.5

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New American Funding - PURCHASE logo

4.5

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500

Min. down payment 
3.5%

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on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

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GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Mortgage loans from our partners

NBKC - PURCHASE logo
Check Rate

on NBKC

NBKC

4.5

NerdWallet rating 
NBKC - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on NBKC

New American Funding - PURCHASE logo
Check Rate

on New American Funding

New American Funding

4.5

NerdWallet rating 
New American Funding - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
500

Min. down payment 
3.5%

Check Rate

on New American Funding

GO Mortgage - PURCHASE logo
Check Rate

on GO Mortgage

GO Mortgage

4.0

NerdWallet rating 
GO Mortgage - PURCHASE logo

4.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
3%

Check Rate

on GO Mortgage

Rocket Mortgage - PURCHASE logo
Check Rate

on Rocket Mortgage

Rocket Mortgage

4.5

NerdWallet rating 
Rocket Mortgage - PURCHASE logo

4.5

NerdWallet rating 
Min. credit score 
580

Min. down payment 
3.5%

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on Rocket Mortgage

Veterans United - PURCHASE logo
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on Veterans United

Veterans United

5.0

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Veterans United - PURCHASE logo

5.0

NerdWallet rating 
Min. credit score 
620

Min. down payment 
0%

Check Rate

on Veterans United

May mortgage rate forecast

Mortgage rates are unpredictable even in times of economic and policy stability. The uncertainty goes into beast mode in May. Will mortgage rates rise in response to inflation caused by higher tariffs? Could rates fall in concert with a slowing economy? Either could happen — or maybe May is too early for the effects of economic policy to be seen.

Rates could fluctuate in May. Prudent buyers can blunt the impact of this volatility by locking their mortgage rates sooner rather than later. A rate lock protects the borrower from rising mortgage rates — but it’s equally true that borrowers can get stuck with higher-than-desired rates if they fall after locking.

The standard advice is to avoid trying to time the market. You can't know when interest rates will be at their lowest. Buy a home when you're at a time in your life when you're ready to buy, you have found the right place, and you can afford it.

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