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30-year mortgage rates could stay near 7% through 2027
Fannie Mae now projects 30-year fixed rates averaging 6.7% in 2027, up from a 6.3% forecast a month earlier as inflation expectations keep Treasury yields elevated.
If buyers have been waiting for mortgage rates to fall before entering the housing market, 2027 may not deliver much relief, according to CNBC Markets. Forecasts cited by the outlet suggest 30-year fixed mortgage rates could remain closer to 7% next year, keeping borrowing costs high for prospective homeowners.
The current average 30-year fixed rate is 6.81%, according to Mortgage News Daily. Fannie Mae expects rates to average 6.7% in 2027, higher than its prior 6.3% forecast, while the Mortgage Bankers Association also projects 6.7% next year, up from its June estimate of 6.5%.
CNBC Markets attributes the outlook to inflation, saying higher inflation tends to push investors to demand higher yields on Treasuries, which can keep mortgage rates elevated. Realtor.com senior economist Joel Berner said affordability challenges have been driven mainly by increased mortgage rates, while the outlet points to the Fed’s preferred inflation measure rising 3.7% in July year over year.
The piece also notes that forecasters have faced a harder environment for anticipating lower rates, with Realtor.com earlier expecting rates around 6.3% for the rest of 2026 before revising its view. CNBC Markets cites renewed tariffs and the war in Iran as factors that could keep inflation high, and it adds that mortgage rates typically move with the 10-year Treasury yield.