On May 13, 2025, mortgage and refinance rates across Australia and the U.S. saw a small upward shift. According to Zillow data, the average 30-year fixed mortgage rate has risen to 6.76%, while the 15-year fixed has moved to 6.07%. These minor changes may be linked to the recent 90-day pause in trade tariffs between the U.S. and China—an agreement that investors are viewing cautiously due to political uncertainty.
While these adjustments are small, they highlight an important message for property owners and buyers: Mortgage rates remain volatile, and careful financial planning is more important than ever.
Today’s Mortgage Snapshot
Here’s a quick look at current national mortgage averages:
- 30-year fixed: 6.76%
- 20-year fixed: 6.35%
- 15-year fixed: 6.07%
- 5/1 ARM: 7.38%
- 30-year VA: 6.31%
- 15-year VA: 5.72%
Refinancing rates are generally slightly higher:
- 30-year refi: 6.84%
- 15-year refi: 6.10%
- 5/1 ARM refi: 7.59%
Please note: These are national averages. Your personal rate will depend on your credit score, deposit size, property type, and loan product.
30-Year vs. 15-Year Mortgages: Which One Makes Sense?
Here’s a simplified example:
- 30-year loan of $400,000 @ 6.76%
→ Monthly repayment: $2,597
→ Total interest paid: $534,939 - 15-year loan of $400,000 @ 6.07%
→ Monthly repayment: $3,391
→ Total interest paid: $210,303
Although a 15-year mortgage saves you more in interest, the monthly commitment is higher. If affordability is a concern, consider choosing a 30-year loan and making extra repayments to reduce the term and total interest over time.
Fixed or Variable Rate? What’s Right for You?
Fixed-rate loans give you stability: the rate stays the same for the entire loan term.
Variable or ARM loans (adjustable-rate mortgages) start lower but fluctuate over time. While some borrowers are attracted to ARMs, recent data shows these rates are no longer as competitive, starting higher than many fixed options.
In today’s uncertain economic environment, many investors and homeowners are opting for fixed-rate stability over variable rate risk.
What’s Next for Interest Rates?
Will rates go down soon?
Economists are not expecting sharp drops until late 2025—if any. Although the Federal Reserve made multiple cuts last year, they’ve kept the rate steady in all 2025 meetings so far. Markets are now predicting the rate will stay unchanged at the upcoming June meeting.
This means home loan interest rates may stay at current levels for some time, making this a critical window to assess your loan strategy.
How Boa & Co. Can Help
Whether you’re:
- Buying your first home,
- Refinancing an investment property,
- Deciding between fixed or variable,
- Or simply unsure how changing interest rates affect your tax or cash flow…
Boa & Co. Chartered Accountants is here to help.
We do more than just accounting—we work alongside you to structure your finances smartly, protect your assets, and make informed lending decisions. Our team provides clear advice based on your full financial picture, so you can take action with confidence.
Speak with a trusted advisor today. Call 1300 952 286, email [email protected], or visit www.boanco.com.au. We’ll help you navigate today’s rates with clarity and long-term confidence.