US Mortgage and Auto Loan Rates Stay High in 2025

As of late May 2025, average 30-year fixed U.S. mortgage rates range from 6.89% to 7.02%, and 15-year rates remain slightly above 6%, reflecting persistent inflation and economic uncertainty. The Federal Reserve has held interest rates steady in 2025 after three cuts last year, citing ongoing inflation, recession risks, and the economic effects of President Trump's tariff and spending policies, with the possibility of further cuts if conditions worsen. High mortgage and refinance rates, limited housing inventory, and elevated home prices continue to deter most homeowners from refinancing. The bond market, especially the 10-year Treasury yield, remains highly sensitive to inflation, labor market changes, and political developments, contributing to mortgage rate volatility. Auto loan rates are also elevated, though some easing may occur if the Fed lowers rates later in the year. Experts recommend comparing multiple loan offers and using mortgage calculators to evaluate affordability amid these fluctuating lending conditions.