If you’ve been watching the housing market, now’s the time to tune in mortgage rates just shifted, and that could affect your buying power or refinancing opportunity.
Here’s where national average rates stand as of May 12, 2025:
📌 30-Year Fixed: 6.66% (down from 6.84% in March)
📌 15-Year Fixed: 5.94%
📌 5/1 ARM: 5.99%
💡 That drop in the 30-year fixed rate may seem small, but it can save homeowners thousands over the life of a loan.
Why Are Rates Moving Now?
Several economic and policy factors are influencing this shift:
🏛️ The Federal Reserve is keeping its federal funds rate steady, but the markets are expecting potential cuts later this year especially with inflation showing signs of cooling.
🌐 Global trade developments, including a pause in new tariffs between the U.S. and China, have eased inflation expectations and supported the case for more stable borrowing costs.
📉 Economic indicators show slowing consumer spending and cooling job growth giving the Fed more room to ease rates if needed.
What This Means for You:
Whether you're looking to buy your first home, upgrade, or refinance, this could be the most favorable rate environment we see for months.
Buyers: Lower rates can increase your purchasing power or reduce monthly payments. A slight rate change can make a big difference in affordability.
Homeowners: If your current rate is above 7%, refinancing now could save you money even with closing costs.
Investors: With rates stabilizing, it may be the right time to expand your portfolio before demand picks back up.
Let’s Make a Plan
As your local real estate expert, I’m here to help you navigate what this means for your personal situation.
✅ Want to explore your buying options?
✅ Need a referral to a trusted mortgage lender for a quick pre-approval?
✅ Curious how your home value has changed recently?
📞 Let’s talk—I’m just a call or message away. 5406077074
