Mortgage Interest Rates 2026 Prediction
During 2025, mortgage interest rates gradually drifted down. We started the year with a 30-year fixed rate of around 7% and are ending the year closer to 6%. It has not been dramatic, but at least it is moving in the right direction. It looks like 2026 will continue the slow incremental downward drift.
Fannie Mae, Freddie Mac, and the Mortgage Bankers Association expect mortgage interest rates to ease slightly. Zillow, Redfin, and Realtor.com all predict the same trend. The predicted interest rates from these organizations range from 5.875% to 6.4% so not much different than where mortgage interest rates are today.
Economists and the Federal Reserve expect stubborn inflation and a relatively stable job market to persist in 2026. Unless an unseen labor-market collapse occurs or the cost of living suddenly drops, we should not expect mortgage interest rates to decrease. If forecasts prove accurate, 2026 would extend the quiet downward drift of mortgage interest rates that have improved borrowing costs but not made a big difference in housing affordability.
If you are a previous client of RMC, we are monitoring rates for you and will be in touch if we think there is an opportunity to save money by refinancing. Please contact me with any questions.
