If you’re planning to buy a home or refinance your current mortgage, you’ve probably been keeping an eye on mortgage rates.

As of today, Friday, May 9, 2025, mortgage rates are holding steady, bringing some relief for homebuyers and homeowners alike. After months of ups and downs, it looks like the rates have paused following the Federal Reserve’s decision to maintain its key interest rate.

Let’s break down what’s happening, why rates are stable right now, and what it means if you are considering buying or refinancing.

What Are the Mortgage Rates Today?

As of May 9, 2025, the average mortgage rate for a 30-year fixed loan is around 6.85%. The 15-year fixed mortgage is hovering close to 6.10%, while the 5/1 adjustable-rate mortgage (ARM) is sitting at around 6.30%.

These rates are similar to what we saw last week, which is a sign that the market is taking a breather after recent volatility.

For buyers and homeowners, this stability can feel like a breath of fresh air. While the rates are still higher than what we saw in the early 2020s, they are no longer climbing at the same rapid pace.

Why Are Mortgage Rates Holding Steady?

The main reason mortgage rates have leveled out is the Federal Reserve’s recent move to hold its key interest rate steady.

The Fed has been hiking rates aggressively over the past two years to fight inflation, which has had a direct impact on mortgage rates. But with signs that inflation is cooling, the Fed decided not to raise rates at its last meeting.

This pause has calmed the bond market, which plays a huge role in setting mortgage rates. When investors are confident that inflation is under control, mortgage rates tend to stabilize.

What Does This Mean for Homebuyers?

For homebuyers, today’s news is a mixed bag. On one hand, rates are still relatively high compared to the record lows we saw during the pandemic.

On the other hand, the fact that they are stable for now means you can plan your homebuying budget with a bit more confidence.

If you are in the market to buy, locking in a mortgage rate now could make sense, especially if you find a home you love. No one can predict the future perfectly, but many experts believe rates will stay in this range for the next few months unless new inflation data shakes things up.

Is It a Good Time to Refinance?

Refinancing can still be a smart move, but it depends on your current rate and situation. If you took out a mortgage a few years ago when rates were around 3%, refinancing now might not save you money.

However, if you have an adjustable-rate mortgage and want to switch to a fixed rate to avoid future hikes, now could be a good time to make that change.

Also, homeowners who have built up equity in their homes may consider a cash-out refinance to tap into their home’s value. Just remember that even with steady rates, refinancing comes with fees, so you’ll want to do the math to see if it’s worth it.

What Could Happen Next?

Looking ahead, mortgage rates will continue to be influenced by inflation, the job market, and the Fed’s decisions. If inflation remains under control, we might see rates stay steady or even dip a little by the end of the year. However, any surprises in the economy could cause rates to shift again.

Housing experts also say that while mortgage rates are a key part of the picture, buyers should keep an eye on home prices and inventory. In many areas, the housing market is still competitive, so it’s important to be prepared if you’re looking to make an offer.

Tips for Buyers and Homeowners

Here are a few practical tips if you’re thinking about buying or refinancing:

1. Shop Around: Don’t just accept the first rate you’re offered. Different lenders offer different rates and terms, so compare your options.
2. Check Your Credit: A higher credit score can help you get a better rate. Make sure your credit report is accurate and take steps to improve your score if needed.
3. Get Pre-Approved: This can give you a clear idea of how much you can afford and make you a stronger buyer in a competitive market.
4. Watch the Market: Keep an eye on economic news and mortgage trends. Rates can change quickly, and being informed helps you make better decisions.
5. Consider Your Timeline: Think about how long you plan to stay in the home. If it’s a short-term plan, an ARM might make sense. For long-term plans, a fixed-rate mortgage could be the safer bet.