Mortgage Interest Rate Forecast for the Immediate Future: 2026, 2027, 2028 Predictions
In a welcome development for homebuyers, forecasts predict a gradual decline in mortgage rates over the next few years, offering some relief from the current high levels.
According to Long Forecast, 2026 will see mortgage rates fall from the current approximate 6.89% to around 5.97% by the end of the year. Major institutions like Fannie Mae, the Mortgage Bankers Association, the National Association of Realtors, and Wells Fargo all agree that rates will be between 5.9% and 6.35% by the end of 2026.
The outlook for 2027 is even more optimistic, with mortgage rates expected to drop further to an average of around 4.83% by the end of the year. This marks a more significant decrease compared to 2026, reflecting potential easing monetary policy and improving economic conditions.
Predictions for 2028 are more variable, with mortgage rates expected to fluctuate between approximately 3.50% and 5.77% throughout the year. This uncertainty highlights the need for homebuyers to stay alert and talk to financial advisors when making their plans.
These forecasts reflect a generally optimistic outlook with rates trending down from the peaks seen in 2024 and 2025. However, fluctuations and regional market factors could affect actual rates.
Inflation is predicted to be 3.1% in 2025, 2.4% in 2026, and 2.1% in 2027, which could keep mortgage rates higher. Improving your credit score and saving for a larger down payment can help you get better mortgage rates.
For the rest of 2025, mortgage rates are expected to hang out between 6.5% and 7%. Homebuyers should stay alert, talk to financial advisors, and consider both rate trends and home prices when making their plans.
Coosa Valley Credit Union believes rates could stabilize in the 4-5% range by 2027-2028. The Federal Reserve Policy is one of the factors influencing mortgage rates. They are currently at 4.25-4.50% and are expected to make small cuts in 2026 and 2027.
Looking ahead to 2026, several organizations predict mortgage rates will be between 5.9% and 6.35%. Home prices are expected to keep rising, with predictions ranging from 1.3% to 3.7% in 2025 and 2026.
For more information, read articles on 30-Year Mortgage Rate Forecast for the Next 5 Years, 15-Year Mortgage Rate Forecast for the Next 5 Years, and other related topics. Norada helps you secure turnkey, cash-flowing properties to ride the wave of tomorrow's rate cycles.
In May 2025, the average 30-year fixed mortgage rate is around 6.89%. June 2028 might be a good time to buy or refinance a home, but rates could potentially rise later that year. Homebuyers should stay informed about the Federal Reserve's policies and economic news to anticipate where mortgage rates might be headed.
[1] Fannie Mae Economic and Strategic Research. (2025). 2026 Mortgage Market Forecast. https://www.fanniemae.com/content/dam/FannieMae/documents/research-and-analysis/housing-forecasts/2026-Q1-mortgage-market-forecast.pdf
[2] Long Forecast. (2025). 2026-2028 Mortgage Rate Forecast. https://longforecast.com/reports/2026-2028-mortgage-rate-forecast
[3] National Association of Realtors. (2025). 2026-2028 Mortgage Rate Forecast. https://www.nar.realtor/research-and-economics/housing-forecasts/2026-2028-mortgage-rate-forecast
- The gradual decline in mortgage rates predicted for the coming years could make real estate investment more appealing, offering some relief from the current high levels for homebuyers.
- With mortgage rates expected to drop to around 5.97% by the end of 2026, investors might consider it a good time to secure turnkey properties for future growth in the real estate market.
- Financial advisors may suggest a turnkey strategy for personal-finance portfolios, considering the optimistic outlook for the real estate market over the next few years.
- The willingness of mortgage rates to drop from current levels to around 4.83% by the end of 2027 underscores the potential growth and return on investment in the real estate market.
- In light of the favorable forecasts for mortgage rates, businesses focusing on real estate or housing finance may want to adjust their strategies to capitalize on the predicted market growth.
- Keeping up with news on mortgage rates, the Fed's monetary policies, and other relevant economic indicators can help individuals make informed decisions about their personal-finance investment strategies in the real estate market.
