Fannie Mae Raises US Mortgage Rate Forecast to 7.5% Through 2027

Key Facts

1Fannie Mae now predicts the average 30-year fixed mortgage rate will reach 7.4% in the fourth quarter of 2026.

2Fannie Mae economists raised their mortgage rate forecast to 7.5% throughout the entirety of 2027.

Fannie Mae raised its mortgage rate forecasts, with economists now predicting the average 30-year fixed rate will remain at 7.5% throughout 2027. CNBC reported that the institution also expects rates to reach 7.4% by the fourth quarter of 2026, reflecting a shift in economic expectations toward a prolonged period of elevated borrowing costs.

The revision follows recent data indicating pressure across housing and consumer sectors, as the UK RICS House Price Balance stood at -32 on October 7, 2026. In the United States, the Michigan Consumer Sentiment index was recorded at 46.3 on October 9, 2026, missing earlier forecasts and highlighting the impact of sustained high interest rates on consumer outlook.