Fannie Mae raises 2027 mortgage-rate forecast to 7.5%
publishers 73articles 97first reported 5 Oct, 09:29 UTCdeveloping since 5 Oct · 26 editions
Fannie Mae has sharply raised its forecast for U.S. mortgage rates, projecting the average 30-year fixed rate will remain at 7.5% throughout 2027. The housing-finance company had previously expected an average of 6.7% next year.
Its forecast for the fourth quarter of 2026 was also increased to 7.4% from 6.8%. Mortgage News Daily put the average 30-year fixed rate at 7.46% on Tuesday, while Bloomberg reported rates had reached 7.5%. Separate daily data showed some rate fluctuations, including a decline in the 30-year refinance rate.
The revision followed a sharp rise in mortgage rates since early September as persistent inflation and a bond-market selloff pushed Treasury yields higher. U.S. producer prices rose 6.3% year over year in September, according to Bureau of Labor Statistics data cited by Trading Economics, exceeding the 5.3% market forecast and accelerating from an upwardly revised 5.6% in August.
The Federal Reserve has also raised its benchmark rate for the first time in more than three years. Mortgage rates do not move directly with the federal funds rate, but they generally track the 10-year Treasury yield and respond to expectations for inflation and monetary policy.
Higher borrowing costs have weighed on housing demand. Pending sales of existing homes fell 8.5% in September from a year earlier, according to Zillow data cited by CNBC, while mortgage applications continued to decline amid high home prices and reduced affordability.
HOW THIS STORY WAS MADE
Written from 8 articles, 4 with the publisher's own text; 8 independent newsrooms once syndicated copies count as one; this version written 246 h after the record first saw the story; the editor kept it as written.
- Publishers
- 73
- Source articles
- 97
- Given to the writer
- 8, 4 with the article's own text
- Independent newsrooms
- 8
- This version written
- 246 h after the record first saw the story
- Second model (editor)
- kept as written
- Publication gate
- passed
- Human review
- none
WHAT THE EDITOR DID
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