Predicted Mortgage Rates by Leading Finance Experts for 2025-2026
In a recent forecast, the Mortgage Bankers Association (MBA) predicts that the 30-year mortgage rate will reach 6.7% by the end of 2025, gradually declining to 6.5% by the end of 2026. This trend is echoed by several other industry experts, including Lawrence Yun, Chief Economist at the National Association of REALTORS®, who anticipates rates will average 6.4% in the latter half of 2025 and dip to 6.1% in 2026.
As of August 28, 2025, the average 30-Year Fixed-Rate Mortgage (FRM) is hovering around 6.56%. The MBA's forecast suggests that this figure will continue to decrease, making mortgages more affordable for potential homebuyers. The primary impact of these rate movements will be on buyer affordability, as rates soften, more people will be able to qualify for mortgages and afford higher-priced homes.
Freddie Mac expects the "lock-in effect" to cool off in 2025, making it more palatable for homeowners to list their properties. This could potentially lead to an increase in the housing market's inventory, providing more options for buyers. Wells Fargo economists predict mortgage rates will remain in the mid-to-high 6% range throughout 2025 and into 2026.
Realtor.com predicts that average rates will match the prior year's performance, with a dip to 6.4% by the end of 2025. Fannie Mae projects mortgage rates to end 2025 at 6.5% and 2026 at 6.1%. These projections indicate a consistent downward trend in mortgage rates over the next two years.
The 52-week average for the 30-Year FRM is 6.69%, with a range between 6.08% and 7.04%. Similarly, the 52-week average for the 15-Year FRM is 5.85%, with a range between 5.15% and 6.27%. The differential of a few tenths of a percent can mean thousands of dollars saved over the life of a loan.
In contrast, mortgage rates in Switzerland are forecasted to rise slightly over the next few years. For 2026, mortgage rates in Switzerland are forecasted to rise slightly, with average fixed mortgage rates expected around 0.5%, increasing to about 0.7% by 2027, assuming the Swiss National Bank's key interest rate remains stable around 0%.
The overall trend in the United States still points towards a decline from current levels, but the decline will be gradual, not steep. Morgan Stanley predicts that a slowing U.S. GDP growth could pull Treasury yields lower, and consequently, mortgage rates with them. Unlike last year when people anticipated rate declines and stayed put, this year, buyers and sellers might move earlier because they aren't expecting significant drops.
These forecasts offer a glimmer of hope for homebuyers, as mortgage rates are expected to remain high but trend downwards over the next two years. Potential buyers are encouraged to stay informed and consult with financial advisors to make the best decisions for their unique financial situations.
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