What Experts Forecast for Mortgage Rates and Home Prices in 2027
When it comes to housing, two of the biggest questions on everyone’s mind right now are:
- What’s next for mortgage rates?
- Where will home prices go from here?
And if you’re weighing whether to move in the next few months or wait until 2027, here’s what you should know.
When experts look ahead to 2027, they see a steady housing market. No wild swings. No big surprises. Just a calmer, more balanced market.
And steady makes planning a whole lot easier. Let’s break it down.
Rates Are Expected To Settle into a Steady Range
Lots of people are holding out for lower rates. But the latest forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo show rates holding fairly flat through 2027 (see graph below).
That means the big swings we’ve seen in recent years may be behind us. Instead of waiting for a dramatic drop, the expectation is a more stable range. And stability can be helpful if you’re trying to plan a move or a monthly payment.
But even with that steadier outlook, it’s worth noting that rates are still expected to stay above the ultra-low levels of 2020 and 2021.
A recent survey of housing experts found that more than 80% expect rates to stay in the 6% range or below for the next six months (see graph below).
That kind of stability can make a big difference when you’re budgeting. Instead of chasing a perfect rate, you can focus on finding the right home and payment that works for you.
According to Redfin, many experts believe the housing market is entering a period of balance, with steady rates giving both buyers and sellers more confidence to make a move.
And remember, there are things you can control, like your credit score, your savings, and finding the right home and strategy for your budget.
Prices Should Keep Climbing, Just More Slowly
On the price side, the story is similar. Forecasts from Zillow, Realtor.com, and the National Association of Home Builders (NAHB) point to continued, but more modest, growth (see graph below).
In other words, prices are still expected to rise, just not at the pace we saw during the pandemic. That’s actually a sign of a healthier, more sustainable market. And if you’re buying, it means you’re less likely to face the kind of runaway bidding wars that made the last few years so tough.
That’s partly because prices are still expected to rise, and inventory, while improving, is still below what’s needed to fully meet demand.
The Best Time To Move Is When It Fits Your Life
Here’s the key takeaway: experts aren’t calling for a crash, and they’re not calling for a boom either. They’re calling for steadiness.
If you’re waiting for the “perfect” moment, it’s worth asking what you’re really waiting for. A big rate drop? A price drop? Based on today’s forecasts, neither is on the horizon.
On the other hand, if you need to move, or you’re ready to move, a steadier market could work in your favor. You’ll have more time to make decisions, less pressure to rush, and a clearer sense of what your payment will look like.
Bottom Line
Looking ahead to 2027, experts expect mortgage rates to stay fairly steady and home prices to keep rising at a more normal pace. No dramatic swings, just a calmer market.
If you’re thinking about making a move, let’s talk about what these forecasts mean for you and your plans. A quick conversation can help you decide whether now is the right time, or if waiting makes more sense for your situation.
Reach out today to talk through what these forecasts mean for you and your plans.