US Mortgage Rates Remain Above 6% Amid Fed Policy Uncertainty

Mortgage interest rates in mid-2025 remain elevated, with the average 30-year fixed rate hovering around 6.44% to 6.74%, and 15-year fixed rates near 5.73% to 5.77%, according to multiple sources including Zillow and Norada Real Estate. Despite earlier hopes for declines, rates are expected to stay above 6% until at least the third quarter of 2026, as forecasted by Fannie Mae, influenced heavily by the Federal Reserve's 'higher-for-longer' monetary policy stance. The Fed's decision to maintain elevated federal funds rates and uncertainty around inflation, tariffs, and supply chain issues contribute to mortgage rates remaining in the 6.5%–6.9% range, with a potential easing contingent on upcoming Fed meetings. Refinancing rates are similarly high, with 30-year fixed conventional refinance loans averaging around 6.69%, and many homeowners opting to retain existing lower-rate mortgages due to the high current costs of refinancing. For investors and buyers, strategies like rate locks and timing acquisitions around Fed announcements are recommended to mitigate volatility and capitalize on potential rate dips. Overall, lenders continue to prioritize borrowers with strong credit profiles, while mortgage affordability remains a significant challenge for many buyers.