Mortgage Rates Expected to Remain High Through 2027
Prospective homebuyers hoping for more affordable conditions by 2027 may be disappointed, as forecasts indicate mortgage rates will likely stay near current levels. The average 30-year fixed rate is currently at 6.81%, and Fannie Mae now predicts an average of 6.7% in 2027—up from earlier projections. Inflation remains a key factor behind high borrowing costs, as it drives up Treasury yields that influence mortgage rates. High inflation has also reduced homebuyers' purchasing power, with real wage growth declining during the first half of 2026 after adjusting for price increases. At the same time, national home prices are expected to rise by another 2.2% in 2027, compounding affordability challenges. Economists note that rising material costs due to tariffs and labor shortages further strain housing construction, limiting supply relief.
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