CHICAGO — Mortgage rates saw a slight uptick this week, but they remain under the 7% threshold, providing a sliver of stability in an otherwise uncertain housing market.
30-Year Fixed Rate Mortgage Hits 6.89%
According to the latest figures from the Freddie Mac Primary Mortgage Market Survey, the national average for a 30-year fixed-rate mortgage (FRM) as of May 29, 2025, is 6.89%. That’s up from 6.86% last week — and marks the highest level since February.
For perspective, at this time last year, the 30-year FRM was 7.03%, meaning current rates are slightly more favorable for buyers and those looking to refinance.
15-Year Mortgage Rates Also Ticked Up
Shorter-term mortgages also experienced an increase. The 15-year fixed-rate mortgage averaged 6.03%, a modest climb from last week’s 6.01%. One year ago, this same mortgage product averaged 6.36%.
Outlook for June and July Remains Mixed
Forecasts from Consumer Affairs suggest that mortgage rates will likely fluctuate between 6.7% and 7.1% into early July. Some projections estimate rates could hover around 6.96% by mid-June, though brief surges could push rates as high as 7.17%.
Factors Influencing the Market Right Now
While the increase is minimal, the implications are significant — especially for prospective homebuyers navigating an already strained housing landscape.
Here are the main forces influencing mortgage rates today:
- Federal Reserve Policy:The Fed continues to tread cautiously with interest rate policy, citing ongoing economic uncertainty and inflation control.
- Inflation Trends:Consumer Affairs notes that inflation dipped slightly to 2.3% year-over-year in April, but warns that future data could be skewed by tariff-related price spikes.
- Economic Conditions:The labor market remains strong, which typically supports higher mortgage rates. However, a potential economic slowdown or uptick in unemployment could force a rate policy reassessment.
Why This Matters To Chicago Buyers
While these numbers reflect national averages, the impact is very real for Chicago-area buyers, many of whom are already feeling squeezed by home inventory shortages and elevated property taxes.
Even minor shifts in rates can affect monthly payments, loan eligibility, and the overall affordability of a mortgage.
Are you shopping for a home or refinancing in the Chicago area? Have recent rate changes impacted your decision-making? Tell us how current mortgage trends are affecting your real estate goals at ChicagoSuburbanFamily.com.
