Mortgage Interest Rate Predictions for 2026
Mortgage rates have steadily declined throughout 2025, reaching near their lowest point in three years recently. Whether this downward trend will persist into 2026 remains uncertain.
The Federal Reserve implemented its second consecutive rate cut on October 29. However, inflation and rising unemployment—factors that are difficult to gauge precisely due to the government shutdown—pose challenges to further rate cuts.
Will Mortgage Rates Rise or Fall in 2026?
The Fed does not control mortgage rates directly, but their moves often influence the same direction in mortgage lending. For instance, in September, anticipation of potential Fed rate cuts pushed the average 30-year mortgage rate down to 6.13%. Though rates increased slightly in October, they remained in the low 6% range.
“Future rate cuts are now uncertain, which could inject some uncertainty into the mortgage rate space.”
Expert Outlook
Experts remain cautious, as economic variables such as inflation and employment trends may impact mortgage interest rates unpredictably in the coming year.
How to Take Action
- Check your current mortgage rate offers to compare with market trends.
- Monitor Fed announcements closely, as their decisions indirectly affect mortgage costs.
- Be prepared for potential fluctuations in mortgage rates throughout 2026.
Summary: Experts foresee mortgage rates in 2026 remaining uncertain due to economic factors and Federal Reserve actions, despite a steady decline seen in 2025.