Understanding Elevated Mortgage and Refinance Rates in May 2026

As of May 8, 2026, homebuyers face higher mortgage rates than those earlier in the year. The current mortgage interest rate averages 6.37% for 30-year terms and 5.75% for 15-year terms according to Zillow. This marks an increase from early March, when rates were 5.75% for 30-year terms and 5.25% for 15-year terms.

Consistency in interest rates can help borrowers compare options. However, elevated rates pose challenges for those looking to refinance or buy a home. Brief dips, such as those in April, provide temporary relief. For example, rates fell below 6% for 30-year terms last month. Yet, a Federal Reserve pause on April 29 shifted that trend.

Upcoming economic events, like the Bureau of Labor Statistics’ inflation report, might influence rate changes throughout May. Such changes could offer opportunities for borrowers to lock in better rates if they understand current conditions thoroughly.

“To better determine the value of locking in a mortgage rate now – or waiting until this current volatility subsides – borrowers need to start with an understanding of where mortgage rates stand right now.”

Refinance rates are also rising. The average refinance rate on a 30-year mortgage is 6.60%, and 5.67% for a 15-year term. Those with past high rates, such as those above 7%, may benefit from refinancing now. If aiming to reduce payoff time, moving to a 15-year term at 5.67% could help.

Consider refinancing costs. If you won’t keep the home long enough to offset these expenses, refinancing may not be advantageous.

The increased rates provide challenges, but still may align with some homebuyers’ budgets. Investigate monthly payments thoroughly and consult lenders directly. They can provide detailed insights into rates and terms, beyond what’s seen on websites.