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Mortgage rates this week
Mortgage rates fell in the week ending May 9 after the release of a tepid employment report.
The 30-year fixed-rate mortgage averaged 7.03% APR, down 29 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 6.25% APR, down 30 basis points from the previous week's average.
The 5-year adjustable-rate mortgage averaged 7.92% APR, down 21 basis points from the previous week's average.
The economy grew by 175,000 jobs in April, according to the Labor Department. That was less than expected. A slowing economy could bring lower inflation.
Mortgage rates dropped in anticipation of a domino effect: a declining inflation rate knocking down prevailing interest rates. If job creation slows for several months in a row, mortgage rates might trend lower.
Mortgage loans from our partners
on New American Funding
on New American Funding
Mortgage loans from our partners
on New American Funding
on New American Funding
May mortgage rate forecast
Mortgage rates could remain above 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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