Predictions for Mortgage Rates: Possibility of Rates Falling to 4% in the Coming Year?
Mortgage rates are set to remain in the mid-6% range throughout 2026, according to leading financial experts. This news comes as the average interest rate for a 15-year fixed mortgage currently hovers around 5.87%, and the 30-year fixed mortgage rate stands at approximately 6.85%.
The Mortgage Bankers Association (MBA) predicts the Q3 2025 average mortgage rate to be 6.8%, with the year-end rate settling at 6.7%. Meanwhile, the National Association of Home Builders (NAHB) anticipates the 2025 end rate to be around 6.62%. Realtor.com and the National Association of Realtors (NAR) have more optimistic outlooks, with predictions of 6.3% and 6.1% respectively for the 2025 average mortgage rate.
For the year 2026, Fannie Mae forecasts the average mortgage rate to be 6.7% and the year-end rate to drop to 6.1%. The MBA expects the rates to stay around 6.3% for 2026, while the NAHB and NAR predict rates of roughly 5.94% and 6.1% respectively for the end of 2026. Wells Fargo also predicts a rate of around 6.35% by the end of 2026.
Monthly projections suggest a gradual decline in mortgage rates throughout 2026, with rates easing from mid-6%s early in the year to near 6% by December. However, experts caution that while inflation and economic factors could push rates down slightly, a drop to 4% is very unlikely in the near future.
Inflation, the Federal Reserve's policies, global events, and trade wars can all influence mortgage rates. Boosting your credit score and increasing your down payment can also qualify you for a lower interest rate. Focusing on cash-flowing investment properties in strong rental markets is important in a high-rate environment, and shopping around for rates from multiple lenders is essential to find the best deal.
A significant economic downturn could force the Fed to slash rates to stimulate growth, but reduced trade tensions and more political stability could ease economic uncertainty and potentially lead to a slight decrease in mortgage rates.
In conclusion, while mortgage rates may ease somewhat in 2026 compared to 2025's near 7% levels, they are expected to remain around the mid-6% range and not return to the historically low 4% levels. Prospective homebuyers should consider these predictions when planning their home purchasing journey and weigh the potential benefits of waiting for lower rates against the risk of missing out on a dream home and paying more if housing prices continue to rise.
[1] Mortgage rates in 2026: What experts predict
[2] Mortgage rates: What to expect in 2026
[3] Mortgage rates in 2026: What experts predict
[4] Mortgage rates in 2026: What experts predict
[1] For individuals considering personal-finance strategies involving realestate investment, focusing on deals in strong rental markets could help ensure ongoing rental income and growth potential, despite the high mortgage rates.
[2] To obtain competitive financing for your mortgage, it's crucial to improve your personal-finance standing by boosting your credit score and increasing your down payment, as this will qualify you for lower interest rates.
[3] In the context of the forecasted mortgage rates in 2026, it's essential to shop around for deals from multiple lenders to find the best financing options available.
[4] By the end of 2026, mortgage rates are predicted to reach approximately 6.1%, as per forecasts from Fannie Mae, the MBA, the NAHB, and the NAR.
[5] A personal-finance turnkey strategy for realestate investment in a high-rate environment might involve targeting deals that offer immediate rental income and the potential for growth.
[6] The growth of your personal-finance portfolio can be influenced by various factors, including mortgage rates, which are affected by inflation, the Federal Reserve's policies, global events, and trade wars.
