30-year fixed mortgage rate forecast in the U.S. 2026 | Statista (2024)

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30-year fixed mortgage rate forecast in the U.S. 2026 | Statista? ›

The 10-year treasury constant maturity rate in the U.S. is forecast to decline by 0.8 percent by 2026, while the 30-year fixed mortgage rate is expected to fall by 1.6 percent. From seven percent in the third quarter of 2023, the average 30-year mortgage rate is projected to reach 5.4 percent in 2026.

Importantly, the SEP projects that the Federal Funds rate will fall to 4.6% in 2024, 3.9% in 2025, and 3.1% in 2026.

Will mortgage rates come down in the next 5 years? Lord: “For the rest of 2023, I predict rates for the 30-year fixed-rate mortgage will average 7.3%, followed by 6.1% in 2024, 5.5% in 2025, 5% in 2026, 4.5% in 2027, and 4.5% in 2028.

Prediction of Mortgage Rates for 2025

Here are some predictions for 2025 from key players and industry associations in the mortgage space: Fannie Mae: 6.1% Mortgage Bankers Association: 5.9% National Association of Home Builders: 6.01%

In its May Mortgage Finance Forecast, the Mortgage Bankers Association predicts that mortgage rates will fall from 6.9% in the second quarter of 2024 to 6.5% by the fourth quarter. The industry group expects rates will fall below the 6% threshold at the end of 2025.

The 10-year treasury constant maturity rate in the U.S. is forecast to decline by 0.8 percent by 2026, while the 30-year fixed mortgage rate is expected to fall by 1.6 percent. From seven percent in the third quarter of 2023, the average 30-year mortgage rate is projected to reach 5.4 percent in 2026.

By April 2025, there's a 80% probability that the Fed's rate will be 4% or higher, according to the CME FedWatch tool, which uses futures pricing to predict rates.

Interest Rates for 2021 to 2027. CBO projects that the interest rates on 3-month Treasury bills and 10-year Treasury notes will average 2.8 percent and 3.6 percent, respectively, during the 2021–2027 period. The federal funds rate is projected to average 3.1 percent.

The average 30-year fixed rate reached an all-time record low of 2.65% in January 2021 before surging to 7.79% in October 2023, according to Freddie Mac.

How high will interest rates be in 2030? ›

Last year, the White House projection for bill rates in 2030 was 2.4%. Such a level would be much higher than has been typical since the turn of the century. Three-month bill rates averaged around 1.5% over that period.

While McBride had initially expected mortgage rates to fall to 5.75 percent by late 2024, the economic reality means they're likely to hover in the range of 6.25 percent to 6.4 percent by the end of the year.

30 Year Mortgage Rate in the United States increased to 7.03 percent in May 29 from 6.94 percent in the previous week. 30 Year Mortgage Rate in the United States averaged 7.73 percent from 1971 until 2024, reaching an all time high of 18.63 percent in October of 1981 and a record low of 2.65 percent in January of 2021.

As of June 7, 2024, the average 30-year fixed mortgage rate is 6.81%, 20-year fixed mortgage rate is 6.56%, 15-year fixed mortgage rate is 6.04%, and 10-year fixed mortgage rate is 5.95%. Average rates for other loan types include 6.76% for an FHA 30-year fixed mortgage and 6.94% for a jumbo 30-year fixed mortgage.

Projections suggest that we may see no rate increases in 2024, and that the Fed might start dropping its rate later this year, according to the CME FedWatch Tool on April 30. If the Fed rate drops, CD rates will likely follow suit, though it's up to each bank and credit union if and when that occurs.

As of May 20, 2024, the current prime rate is 8.50%, according to The Wall Street Journal's Money Rates table.

“Mortgage rates will be at least a full 2% lower by 2025.” She adds that if the inflation rate holds at 2%, then we should see mortgage rates remain at lower levels for the balance of the next five years.

Following higher-than-expected reports on inflation, the U.S. Federal Reserve decided to keep its benchmark interest rate at its current levels until its next meeting in late June, despite hopes that the central bank would start cutting rates in 2024.