Fannie Mae now expects 30-year fixed mortgage rates to stay around 7.4% this quarter and 7.5% through 2026, far above its earlier forecast. The revision comes as inflation stays hot and bond yields rise.
01Summary
- 01Fannie Mae now expects the average 30-year fixed mortgage rate to be 7.4% in the fourth quarter of this year.
- 02It has lifted its forecast for 2026 to 7.5% across the whole year, from an earlier estimate of 6.7%.
- 03The group previously forecast 6.8% for the fourth quarter of this year and 6.7% for next year.
- 04Mortgage News Daily said the average 30-year fixed rate stood at 7.46% on Tuesday and could rise further on Wednesday.
- 05Pending sales of existing homes fell 8.5% in September year-on-year, according to Zillow.
02Why it matters
Higher mortgage rates make borrowing more expensive and reduce how much buyers can afford, which can cool the housing market further. The forecast also matters because it signals how long pressure on home sales and affordability may last.
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