Best Mortgage Rates May 2026: Today's Lowest Rates Compared
The difference between the best and worst mortgage rate in May 2026 is 0.4% — that's $28,800 over 30 years on a $400K loan. We compare today's lowest rates by loan type so you know if you're getting a good deal.
30-Year Fixed
6.49%
Best available
15-Year Fixed
5.85%
Best available
FHA
5.89%
580+ credit
VA
5.75%
Veterans only
📊 Don't overpay — compare your personalized rate now
Rates vary 0.25-0.50% between lenders for the same borrower. Comparing 3-5 lenders can save $20K-$30K over 30 years.
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Rate alert: 30-yr fixed at 6.49% for 760+ credit. Rates change daily — lock yours now →
Mortgage Rates by Loan Type — May 5, 2026
Best available rates assume 760+ credit score, 20% down, primary residence.
| Loan Type | Avg Rate | Best Rate | vs Last Week | Notes |
|---|---|---|---|---|
| 30-Year Fixed | 6.71% | 6.49% | +0.08% | Most popular loan type |
| 15-Year Fixed | 6.05% | 5.85% | +0.05% | Pay off faster, lower rate |
| FHA 30-Year | 6.10% | 5.89% | +0.06% | 580+ credit, 3.5% down |
| VA 30-Year | 5.95% | 5.75% | +0.04% | Veterans only, $0 down |
| USDA 30-Year | 6.15% | 5.95% | +0.05% | Rural/suburban, $0 down |
| Jumbo 30-Year | 6.85% | 6.60% | +0.10% | Loans over $832,750 |
| 5/1 ARM | 6.20% | 5.99% | -0.02% | Fixed 5 yrs, then adjusts |
Rates as of May 5, 2026. National averages sourced from multiple lender surveys. Actual rates vary by lender, credit score, down payment, and loan purpose.
30-Year Fixed Rates by Credit Score (May 2026)
Based on $400,000 loan, 20% down, primary residence.
| Credit Score | Rate | Monthly Payment | vs Best Rate |
|---|---|---|---|
| 760+ | 6.49% | $2,530 | Best rate |
| 740–759 | 6.62% | $2,562 | -$32/mo vs 760 |
| 720–739 | 6.74% | $2,591 | -$61/mo vs 760 |
| 700–719 | 6.87% | $2,624 | -$94/mo vs 760 |
| 680–699 | 7.00% | $2,661 | -$131/mo vs 760 |
| 660–679 | 7.25% | $2,723 | -$193/mo vs 760 |
| 640–659 | 7.50% | $2,788 | -$258/mo vs 760 |
Key insight: A 760 vs 660 credit score = $274/month difference = $98,640 over 30 years on a $400K loan. If your score is below 720, consider improving it before applying.
Why Are Mortgage Rates at 6.71% in May 2026?
Federal Reserve Hold
The Fed held rates steady at 3.50-3.75% in May 2026. Markets now expect only 1-2 cuts in 2026, down from 3-4 predicted in January. This limits how far mortgage rates can fall.
Tariff Inflation Risk
New tariff policies implemented in Q1 2026 have pushed inflation expectations higher, keeping the 10-year Treasury yield — which mortgage rates follow — elevated above 4.5%.
Strong Jobs Market
Unemployment at 3.8%, wage growth at 4.2%. Strong economic data reduces urgency for Fed cuts, keeping rates higher for longer.
Home Prices Still High
Median home prices remain near all-time highs. Less affordability pressure on the Fed to cut rates to stimulate housing.
Mortgage Rate Forecast: Will Rates Drop in 2026?
Base Case (60% probability)
6.25-6.75% through Q3 2026, drop to ~6.00% by Q1 2027
Optimistic (25% probability)
Recession signals push rates to 5.75-6.00% by Q4 2026
Pessimistic (15% probability)
Stagflation keeps rates at 7.00%+ through 2026
Bottom line: Don't wait for a dramatic rate drop that may not come in 2026. If you find a home you can afford, locking in now and refinancing later ("marry the home, date the rate") is often the better strategy.
Get Your Personalized Rate in 60 Seconds
Rates shown are national averages. Your actual rate depends on credit score, down payment, and lender. Compare 3-5 quotes to find your best rate.
6 Steps to Get the Best Rate in May 2026
Check and improve your credit score
Get to 760+ if possible. Even going from 700 to 740 saves ~0.25% rate. Request credit report at AnnualCreditReport.com. Pay down credit cards below 30% utilization.
Save for 20%+ down payment
Avoid PMI and get the best pricing tier. 20% down saves $100-200/month in PMI + unlocks better rate tiers.
Shop at least 3-5 lenders on the same day
Multiple credit pulls within 14-45 days count as ONE inquiry. Rate shopping is free and can save 0.25-0.50%. Never accept the first quote.
Compare APR, not just rate
APR includes fees. A 6.49% rate with $4,000 fees might cost more than a 6.55% rate with $500 fees. Always get the Loan Estimate to compare.
Consider buying discount points
1 point = 1% of loan amount = ~0.25% rate reduction. Example: on $400K loan, 1 point = $4,000 upfront → saves $66/month → breaks even in ~5 years. Worth it if you keep the loan 7+ years.
Lock your rate when you find a good one
Rates change daily. Once you have an accepted offer, lock immediately for 30-60 days. Consider a float-down option if you want downside protection.
Frequently Asked Questions
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Rate gap between best and worst lender = $28,800 over 30 years on a $400K loan. Takes 60 seconds to compare.
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Meet David
Refinance & Rate Specialist
David Rodriguez is a seasoned refinancing expert with over 10 years of experience in mortgage rate analysis and market trend forecasting. As a Certified Rate Lock Specialist, he has saved homeowners millions in interest payments through strategic refinancing timing. His expertise in Federal Reserve policy impact and mortgage-backed securities makes him a go-to expert for rate predictions and refinancing strategies.
EXPERTISE:
KEY ACHIEVEMENT:
Saved clients $50M+ in interest payments