Mortgage rates may remain above 7% through 2027, according to two new forecasts. The projections suggest little relief for buyers and sellers in the coming years.
The forecasts point to persistent inflation and strong economic data as key factors. These conditions could keep the Federal Reserve from cutting interest rates aggressively.
The Fed’s benchmark rate influences mortgage rates indirectly. When the central bank holds rates steady, home loan costs tend to stay elevated.
The 30-year fixed mortgage rate has hovered near or above 7% for much of the past two years. That level is roughly double what borrowers saw in 2020 and 2021.
Higher rates have cooled demand but not enough to bring prices down sharply. Many homeowners with low-rate mortgages are staying put, limiting supply.
Economists say a meaningful drop below 7% would require a weaker job market or a clear slowdown in inflation. Neither appears likely in the near term.
For buyers, the forecast means higher monthly payments and tighter budgets. For sellers, it suggests fewer qualified buyers and longer listing times.
