📊 Mortgage Rates Update: Weekly Trends (May 7, 2025)
The mortgage world is buzzing again as we kick off the second week of May. Whether you’re a real estate investor, first-time homebuyer, or simply watching the market, here’s what you need to know about this week’s mortgage trends.
📈 This Week’s Mortgage Rate Snapshot
| Loan Type | Average Rate | Weekly Change |
|---|---|---|
| 30-Year Fixed | 6.72% | ▲ 0.04% |
| 15-Year Fixed | 5.94% | ▲ 0.03% |
| 5/1 ARM | 6.20% | ▼ 0.02% |
| Jumbo 30-Year Fixed | 6.65% | ▲ 0.05% |
| FHA 30-Year Fixed | 6.42% | ▲ 0.02% |
| VA 30-Year Fixed | 6.38% | ▼ 0.03% |
*Rates based on national averages. Actual rates may vary based on lender, credit profile, and location.
🌍 DSCR Loans for Foreign Nationals
For international investors using DSCR loans, rates are holding steady this week:
- Foreign National DSCR (No U.S. Credit): 7.75% – 8.75%
- Foreign National DSCR (With U.S. Credit or ITIN): 7.25% – 8.25%
- High LTV DSCR (Up to 80% LTV): 8.00% – 9.00%
🧠 Rates depend on property type, loan amount, DSCR ratio, and reserve structure.
🧐 What’s Driving the Market?
This week’s slight uptick in rates is largely due to uncertainty surrounding the Federal Reserve’s policy stance. The Fed chose to hold rates steady during the May FOMC meeting, but inflation remains sticky, and future cuts are far from guaranteed.
Investors are cautiously watching:
- 📉 Employment reports
- 📊 CPI and PCE inflation data
- 💵 Treasury yield movements
🏠 What This Means for Buyers and Investors
- Lock-in Alert: If you’re close to closing, now is a good time to consider locking in your rate. Volatility may increase later this month.
- Refinancers: Watch for dips—especially if inflation data improves later in May.
- Investors Using DSCR: Focus on leverage and cash flow. Underwriting remains favorable, but rates are sticky.
💬 Expert Tip
“We’re in a volatile pocket of 2025. Don’t bet on a big drop just yet. If the numbers work on your deal today—lock it, close it, move on.”
– Lior Lustig, Mortgage Broker & Real Estate Investor
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