Mortgage Interest Rates Forecast

Mortgage rates this week

Mortgage rates rose modestly in the week ending May 8 as the Federal Reserve declined to cut short-term interest rates. The future direction of interest rates was in doubt — even more than usual — in a time of economic uncertainty.

• The 30-year fixed-rate mortgage averaged 6.94% APR, up seven 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 6.03% APR, up three basis points from the previous week's average.

• The 5-year adjustable-rate mortgage averaged 7.25% APR, up three basis points from the previous week's average.

Financial markets are forecasting that the Fed is likely to leave short-term rates alone at its next meeting, June 17-18. During this time of abrupt changes in trade policy, that consensus could change.

Fed policy has an indirect effect on mortgage rates, and central bankers are watching the same economic indicators as mortgage lenders: inflation and employment. It’s too soon to know whether the ripple effects of tariffs will drive rates up or down. You can give yourself peace of mind by locking your mortgage rate as soon as it's practical, to protect yourself from sudden rate increases.

» MORE: How the Federal Reserve affects mortgage rates