US mortgage rates climb in mid-May 2026 as refinancing activity surges

US mortgage and refinance interest rates have risen across major loan categories in mid-May 2026, according to data from Zillow released on 18 May. The lender marketplace reported that rates for all loan types increased since the previous Monday, with the 30-year conforming fixed rate climbing 16 basis points to 6.41 per cent.

Other fixed-rate products also saw upward pressure. The 20-year fixed rate increased by 12 basis points to 6.07 per cent, while the 15-year fixed rate rose 14 basis points to 5.80 per cent. Adjustable-rate products moved higher as well, with the 5/1 adjustable-rate mortgage (ARM) increasing 22 basis points to 6.63 per cent.

The rise in borrowing costs comes against a backdrop of heightened refinancing activity. Zillow noted that mortgage rates are currently more than half a percentage point lower than they were at the end of the previous May. This relative decrease has driven a more than 62 per cent year-over-year increase in refinance applications.

Despite the weekly rise, rates inched lower during the current week following an upbeat jobs report that provided a slight boost to the bond market. Industry forecasts from the Mortgage Bankers Association and Fannie Mae suggest rates will remain relatively stable in the near term, with the MBA expecting the 30-year rate to hover near 6.30 per cent through 2026 and Fannie Mae predicting rates just above 6 per cent by year-end.

The cost of borrowing remains significant for consumers. A typical $300,000 mortgage with a 30-year term at 6.41 per cent results in a monthly principal and interest payment of approximately $1,878.48, with total interest paid over the life of the loan reaching $376,254. In contrast, a 15-year term at 5.80 per cent would require monthly payments of approximately $2,499.27, though total interest would be limited to $149,869.