Mortgage rates are projected to stay above 6% in 2026 due to inflation, deficits, and cautious Federal Reserve policy.
Inflation remains above the Fed’s 2% target, pushing lenders to maintain higher rates for long-term risk protection.
Most forecasts place 2026 mortgage rates between 5.9% and 6.4%, with limited volatility expected.
Elevated 10-year Treasury yields and strong employment reduce pressure for aggressive rate cuts.
A modest rate dip from 6.6% to 6.3% could increase home sales up to 14%.
