Nadine C.

Forecasts suggest US mortgage rates may drop to ~5% by the end of 2027.

Morningstar expects the most optimistic 2027 rate at 5%, assuming easing inflation continues.

5% Mortgage Rates Could Return: 2027 Outlook

Mortgage rates hovered between 6.5% and 7% amid ongoing economic uncertainty.
Middle East tensions had minimal impact on rates, as ceasefire holds and inflation remains key.
Tariff-induced inflation may delay Fed cuts, keeping mortgage rates elevated into 2025.
The Mortgage Bankers Association predicts only a slight drop to 6.7% this year.
The Federal Reserve may cut rates as early as September or possibly July.