rewrite this title Mortgage Rates Today, Tuesday, May 26: Lower, for Now – NerdWallet

Mortgage rates are lower today following the closure of the bond markets for Memorial Day weekend.

The average interest rate on a 30-year, fixed-rate mortgage dropped to 6.46% APR, according to rates provided to NerdWallet by Zillow. This is 13 basis points lower than yesterday but six basis points higher than a week ago. (See our chart below for more specifics.) A basis point is one one-hundredth of a percentage point.

🤓 From the Nerds: Kate on Rates

This week, we’re watching tensions in Iran as new U.S. strikes strain ongoing peace talks. Inflation was already elevated before the war began Feb. 28. Disruptions to oil shipments through the Strait of Hormuz have only added to those pressures. A peace agreement wouldn’t suddenly solve inflation, but it could at least turn down the heat.

On Thursday, we’re watching for the Personal Consumption Expenditures Price Index (PCE) from the Bureau of Economic Analysis, which contains the Federal Reserve’s preferred inflation measure. It’s an important data point ahead of next month’s Fed meeting, which will be the first under incoming Chair Kevin Warsh.

If the PCE shows inflation picking back up, the next Fed meeting could get uncomfortable fast. Minutes from the Fed’s April meeting showed some officials growing more concerned that inflation could linger, raising the possibility that rate hikes may not be completely off the table. Even the hint of another Fed rate hike could be enough to push mortgage rates higher.

Refinancing might make sense if today’s rates are at least 0.5 to 0.75 of a percentage point lower than your current rate (and if you plan to stay in your home long enough to break even on closing costs).

With rates where they are right now, you may want to start considering a refi if your current rate is around 6.96% or higher.

There is no universal “right” time to start shopping — what matters is whether you can comfortably afford a mortgage now at today’s rates.

Rate locks protect you from increases while your loan is processed, and with the market forever bouncing around, that peace of mind can be worth it.

In addition to market factors outside of your control, your customized quote depends on your:

Even two people with similar credit scores might get different rates, depending on their overall financial profiles.

Maybe — but even personalized rate quotes can change until you lock. That’s because lenders adjust pricing multiple times a day in response to market changes.

About the author

Abby Badach Doyle has been writing about homeownership and mortgages for NerdWallet since 2022. Her work has been featured in outlets including The Associated Press, The Washington Post and The Seattle Times. From interactive tools to practical advice, Abby is passionate about making the homebuying journey less stressful — especially for first-time buyers.

As a reporter, she is interested in writing about innovative housing solutions (like co-living) and personal stories about how homeownership builds community and a sense of belonging.

Abby is also a musician, songwriter and producer who knows the challenge of balancing creative fulfillment with financial stability. In 2024, she produced a special episode of NerdWallet’s “Smart Money” podcast on how to navigate income swings in a creative career.

Abby is based in Pittsburgh, a city defined by working-class grit and neighborly spirit. When she’s not writing about personal finance, she’s at her urban homestead: playing fiddle, raising chickens and preserving the bounty from her garden.