Will mortgage rates stay above 7% in 2027?

Two new forecasts suggest mortgage rates could remain above 7% into 2027, a prospect that carries weight for both sides of the housing market. The 30-year fixed rate has hovered near or above that threshold for much of the recent period, and these projections imply little near-term relief rather than a quick return to the lower levels seen earlier in the decade.

For buyers, a sustained 7% rate compounds affordability pressure: monthly payments on a given loan amount stay elevated, which can push some households out of the market or toward smaller purchases. For sellers, high rates can discourage existing homeowners from listing, since many hold loans well below current levels — a dynamic that keeps inventory tight and supports prices even as demand cools.

What to watch is the path of inflation and the Federal Reserve's policy stance, since mortgage rates broadly track Treasury yields and expectations for future rate moves. Also worth monitoring is whether forecasts converge or diverge; a single projection is not a guarantee. The key takeaway is that housing activity may stay subdued if borrowing costs remain elevated, with affordability and inventory the main pressure points.