Where Will 30-Year Interest Rates Be by Mid-2026? Here’s What Experts Predict

Interest rates have been on quite the rollercoaster in recent years, leaving homebuyers, homeowners, and investors wondering: what’s next? If you’re planning to buy, sell, or refinance in the next couple of years, understanding where 30-year mortgage rates might land by mid-2026 is key to making smart financial decisions. Let’s take a look at what the experts are saying—and what it could mean for you.

Looking Back to Look Ahead

First, a quick trip down memory lane. In the wake of the pandemic, mortgage rates hit historic lows, dipping below 3% in 2021. Fast forward to 2024, and we’ve seen rates climb above 7% as the Federal Reserve battled inflation. The question on everyone’s mind: will rates come back down, keep climbing, or settle somewhere in between?

What the Experts Predict for 2026

• Freddie Mac: According to Freddie Mac’s most recent forecast, rates are expected to gradually decline as inflation cools and the Fed eventually eases monetary policy. By mid-2026, Freddie Mac projects 30-year fixed mortgage rates to hover around 5.5% to 6% (Freddie Mac Research).
• Mortgage Bankers Association (MBA): The MBA’s long-term outlook suggests rates could trend lower, potentially settling in the mid-5% range by 2026, assuming the economy avoids a major recession (MBA Forecast).
• Fannie Mae: Fannie Mae’s economic team sees a slow but steady decline in rates, projecting 30-year mortgages to be between 5.3% and 5.8% by the middle of 2026, as the labor market stabilizes and inflationary pressures fade (Fannie Mae Forecast).
• Goldman Sachs: In a recent report, Goldman Sachs anticipates that rates will remain somewhat elevated compared to the ultra-low rates of the early 2020s, but could dip below 6% if inflation continues to moderate (Goldman Sachs Economic Outlook).

What Does This Mean for You?

If you’re planning to buy or refinance in the next two years, these forecasts suggest some relief could be on the horizon—but we’re unlikely to see the rock-bottom rates of the pandemic era return anytime soon. Instead, mid-5% to 6% seems to be the consensus sweet spot among leading economists, barring any major economic surprises.

It’s important to remember that mortgage rates are influenced by a complex web of factors, from inflation and Federal Reserve policy to global economic trends. Staying informed and working with a trusted mortgage advisor can help you make the best decision for your situation.

Engel & Völkers local real estate experts are engaged in over 1,000 locations worldwide. Contact me to connect you with an advisor precisely where you want to be.

Chad Behnken

Luxury Real Estate Advisor

Licensed in CO and GA

Engel & Völkers Pikes Peak

chad.behnken@engelvoelkers.com

www.chadbehnkenev.com

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Curious how these predictions might impact your plans? Reach out anytime—I’m here to help you navigate the ever-changing world of real estate finance!