Searching for favorable mortgage interest rates is a crucial aspect of both purchasing a home and refinancing an existing mortgage. However, this task has proven to be quite challenging in recent years, particularly in recent weeks. After experiencing a temporary dip below 6% in March, mortgage rates increased sharply by the end of the month, primarily influenced by international conflicts and market volatility. Although rates saw a slight decrease in April, they rose again last week following the Federal Reserve’s decision to maintain interest rates, marking the third consecutive pause in 2026. With no scheduled Fed meetings for May, borrowers seeking relief from the central bank will need to explore other options for the time being.

Despite the current situation, there remains a possibility for mortgage interest rates to drop. Various factors influence these rates, with the Fed being just one of them, albeit an important one. To make an informed decision on whether to wait for potentially lower rates or to lock in a current rate, borrowers should be aware of the rates as of May 5, 2026.

The average interest rate for a 30-year mortgage stands at 6.37% as of May 5, 2026, based on data from Zillow. For a 15-year mortgage, the average rate is 5.87%. While these figures indicate an increase from those seen in recent months, they are relatively consistent with historical rates. Additionally, they show improvement compared to early May 2025 and are lower than rates from May 2024. Therefore, although not ideal, these rates may still align with many borrowers’ budgets, allowing them to move forward with their homebuying goals. This time of year typically offers a favorable inventory of homes and more agreeable weather conditions.

For those considering refinancing, the average rate for a 30-year refinance loan is 6.66% as of May 5, 2026, while the average for a 15-year refinance is 5.62%. Although these rates may not significantly undercut existing rates, potential savings should not be overlooked. Borrowers should carefully evaluate their new monthly payments with each option. It is also important to factor in the closing costs associated with refinancing, as these can diminish the expected savings from a lower mortgage rate.

Overall, the current average mortgage interest rates are 6.37% for a 30-year loan and 5.87% for a 15-year loan. The median refinance rates are 6.66% for a 30-year term and 5.62% for a 15-year term. While these rates may not be perfect, they could still be manageable for many borrowers. Mortgage rates can fluctuate daily, sometimes in unexpectedly favorable directions. It is advisable to keep a close watch on the rate trends and work on improving credit scores, ensuring readiness to secure a better rate when the opportunity arises.

Edited by Angelica Leicht