Fannie Mae (FNMA) raised its mortgage rate forecast in its October 2026 economic and housing outlook. It now expects the average 30-year fixed mortgage rate to reach 7.4% in the fourth quarter of 2026 and hold at 7.5% throughout 2027.
In its September 2026 forecast, Fannie Mae projected a 6.8% rate in the fourth quarter of 2026 and a 6.7% average for 2027. The revised outlook reflects persistent inflation pressures and changing financial market conditions affecting the housing sector. It signals that homebuyers may face high borrowing costs in the near future.