Mortgage rates to remain above seven percent through 2027

Mortgage interest rates will stay above 7 percent through the end of 2027, according to a forecast delivered by Mortgage Bankers Association Chief Economist Mike Fratantoni. Realtor.com News and HousingWire both reported that Fratantoni announced the projections on Sunday at the organization's annual conference in Chicago. The forecast indicates that borrowing costs will remain elevated due to sticky inflation and persistent federal budget deficits. [1][2]

Realtor.com News reported that Fratantoni expects the average 30-year fixed mortgage rate to sit at 7.3 percent in the fourth quarter of 2026. High central bank short-term rates and elevated Treasury yields continue to drive borrowing costs upward. Meanwhile, HousingWire reported that total single-family mortgage volume is projected to fall 5 percent to $1.99 trillion in 2027 as high rates restrain lending activity. [1][2]

The persistent high borrowing costs build on recent upward market moves. As FTMQ Business reported earlier, 30-year fixed loan rates climbed above 7.4 percent in early October 2026, putting continued financial pressure on potential homebuyers. [7]

Fratantoni noted during his speech that while rates are expected to retreat from their recent peaks, borrowing costs will not fall significantly anytime soon, HousingWire reported. Sustained 7 percent mortgage rates are expected to keep origination volumes under $2 trillion through 2027 and maintain affordability challenges across the United States housing market. [1][2]