FinancingBy RISE Community editors
Why economists expect mortgage rates to stay above 7% into 2027
Housing economists cited by CNBC say mortgage rates above 7% look likely to persist, with Fannie Mae forecasting a 7.5% average in 2027.
Key facts
- Fannie Mae projects a 7.5% average mortgage rate in 2027, while the Mortgage Bankers Association sees rates holding above 7%.
- The Fed's preferred inflation gauge, the PCE price index, has not been below the 2% target since February 2021.
- Selma Hepp of Cotality points to heavy federal borrowing and artificial intelligence infrastructure spending as added competition for capital.
- Tom Graff of Facet says banks have pulled back from holding mortgage-backed securities after losses during the 2022-23 rate spike.
- Steve Kaminski of TD Bank notes the Fed is no longer actively buying mortgage-backed securities.
Create a free account to read the full summary and the RISE take
A free account gives you the full summary of every story, the RISE take on what it means for owners, and the whole news archive with filters and search.
Takes about a minute. We email you a link to confirm; open it and you come straight back here.
Read the original at CNBC (opens in a new tab)
Source: Mortgage rates above 7% are the 'new normal'—here's why — CNBC, October 26, 2026. Summary and commentary by RISE Community; read the full story at the source.
Related Stories
- Mortgage Rates Ease to 7.38% as Traders Expect the Fed to Hold
- Mortgage Rates Ease to 7.52% as the 10-Year Treasury Yield Drops to 5.09%
- Fed raises rates 25 basis points; mortgage rates track long-term yields, column says
- NAHB's Dietz Sees 7.5% Mortgage Rates Holding Until Geopolitical Issues Ease
- Fannie Mae trims 2027 mortgage origination forecast as rate outlook rises