Mortgage rates sit at 7.34% as Fannie Mae forecasts high rates through 2027

Mortgage rates remain near historic highs, with the national average on a 30-year fixed-rate Mortgage sitting at 7.34%, according to Bankrate, a financial services company. For anyone shopping for a home or considering a refinance, the numbers require a sharp pencil and careful planning.

Fannie Mae, the government-backed Mortgage company, just revised its outlook, forecasting Mortgage rates in the 7.50% range for the entirety of 2027. That is a steep jump from its earlier projections of 6.20%. Rates climbed after the Federal Reserve, the central banking system of the United States, raised its benchmark interest rate at its September meeting.

Stubborn inflation, bond market volatility, and continued conflict abroad have kept borrowing costs elevated. The Federal Open Market Committee, the group that sets US monetary policy, is scheduled to meet again in late October to decide whether to hold or raise rates further.

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While 30-year fixed rates hover around 7.34%, 15-year fixed loans average 6.76%. In the early 1980s, 30-year rates peaked above 16%, but today's levels are the highest borrowers have seen since late 2023. When you are financing a home purchase, your personal credit score, down payment size, and the number of discount points you buy upfront all sway the final rate a lender offers you.

Getting multiple rate quotes is your best defense against overpaying. A recent study by Bankrate found that homeowners who do not shop around typically pay an extra $78,000 over the life of the loan compared to buyers who request competing quotes. Check your offers with at least three different Mortgage lenders before signing on the dotted line.

A few hours of paperwork can save you tens of thousands of dollars over the next three decades.