Compare current mortgage rates for today

Mortgage rate news this week - May 7, 2025

Mortgage rates inch up as Fed stays on pause

Mortgage rates rose slightly this week, with 30-year fixed-rate loans averaging 6.82 percent, according to Bankrate’s latest lender survey.

The Federal Reserve announced Wednesday it was leaving rates untouched yet again. While the Fed is an important player in the mortgage market, it doesn’t set rates. That responsibility falls to 10-year Treasury yields, the main benchmark for mortgage rates. In recent weeks, it has moved sharply, shooting below 4 percent and then above 4.5 percent, before settling around 4.25 percent this week.

Learn more: Weekly mortgage rate trend predictions

How to compare mortgage rates

The rates you see advertised here might not exactly match the rate you're offered due to factors like your credit score, down payment and more. Still, getting the best possible rate on your mortgage can make a big difference in your monthly budget, and potentially thousands saved in interest over the life of the loan. You won’t know what rates you qualify for, though, unless you narrow down the best type of mortgage for your situation and comparison-shop. Here’s how:

• Decide on the right type of mortgage. Consider your credit score and down payment, how long you plan to stay in the home, how much you can afford in monthly payments and whether you have the risk tolerance for a variable-rate loan versus a fixed-rate loan. Our mortgage calculator can help you estimate your monthly mortgage payment in various scenarios.
• Shop around. Mortgage rates change often and vary widely by lender, loan type and term. When comparing lenders, pay attention to the APR, not just the interest rate. The APR, or annual percentage rate, reflects the total cost of the loan, including the interest rate and other fees.
• See what others have to say. Check out our mortgage lender reviews to learn more about the lender's offerings and service, as well as testimonials to gauge how past customers rate their experience.
• Get preapproved. Before you shop for a home, get preapproved for mortgage financing with at least three lenders. This'll help you uncover the best possible rate and allow you to make an offer quickly when you find the right home. (Keep in mind, getting preapproved with a lender doesn’t mean you ultimately have to apply for a mortgage with that lender.)

Factors that determine your mortgage rate

Your mortgage rate depends on a number of factors, including your individual credit profile and what’s happening in the broader economy. These variables include:

• Your credit and finances: The better your credit score and higher your income compared to your debt, the better interest rate you’ll get. 
• Loan size and type: The size of your loan, down payment and the type of loan all affect your mortgage rate.
• Location of the property: Rates vary based on where the property is located.
• Whether you’re a first-time homebuyer: Many first-time homebuyer loan programs include a lower-rate mortgage.
• Economic factors: Broadly, mortgage rates are impacted by forces like the Federal Reserve, inflation and investor appetite.
• The lender you work with: Lenders set rates based on many factors, including their own supply and demand.
• Mortgage points: Also known as discount points, these additional fees reduce your interest rate. Decide whether they're worth it with our guide to mortgage points.

How does the Federal Reserve affect mortgage rates?

Like any other financial product, the cost of a mortgage fluctuates with the happenings of the economy, including Federal Reserve decisions. The central bank doesn’t set specific mortgage rates, but its policies set the tone for what banks and other lenders charge for loans.

How to refinance your current mortgage

Next steps to getting a mortgage

Before you start applying for a mortgage, here are some mortgage resources to prepare you for the process: 

Meet our Bankrate experts

Written by: Jeff Ostrowski, Writer and Housing Market Analyst

I cover mortgages and the housing market. Before joining Bankrate in 2020, I spent more than 20 years writing about real estate and the economy for the Palm Beach Post and the South Florida Business Journal. I’ve had a front-row seat for two housing booms and a housing bust. I’ve twice won gold awards from the National Association of Real Estate Editors, and since 2017 I’ve served on the nonprofit’s board of directors.

Read more from Jeff Ostrowski

Edited by: Suzanne De Vita, Managing Editor, Home Lending

I’ve covered the housing market, mortgages and real estate for the past 13 years. At Bankrate, my areas of focus include first-time homebuyers and mortgage rate trends, and I’m especially interested in the housing needs of baby boomers. In the past, I’ve reported on market indicators like home sales and supply, as well as the real estate brokerage business. My work has been recognized by the National Association of Real Estate Editors.

Read more from Suzanne De Vita

Reviewed by: Greg McBride, CFA, Chief Financial Analyst, Bankrate

Greg McBride is a CFA charterholder with more than a quarter-century of experience in personal finance, including consumer lending prior to coming to Bankrate. Through Bankrate.com's Money Makeover series, he helped consumers plan for retirement, manage debt and develop appropriate investment allocations. He is an accomplished public speaker, has served as a Wall Street Journal Expert Panelist and served on boards in the credit counseling industry for more than a decade and the funding board of the Rose Foundation’s Consumer Financial Education Fund.

Read more from Greg McBride