Will mortgage rates stay above 7% in 2027?

Two new forecasts point to mortgage rates remaining above 7% into 2027, according to reporting summarized by Dow Jones. That would extend a stretch of elevated borrowing costs that has already reshaped affordability for buyers and cooled activity for sellers.

The relevance extends beyond housing. Mortgage rates track closely with the 10-year Treasury yield, which in turn reflects expectations for Federal Reserve policy, inflation, and long-term government borrowing. When rate-cut hopes fade or Treasury yields stay high, mortgage costs tend to follow. For markets, sustained 7%-plus rates can weigh on homebuilder sentiment, mortgage origination volumes, and consumer spending tied to housing turnover.

What to watch: the path of inflation data, Fed communications, and 10-year Treasury yields, since those are the inputs these forecasts depend on. Forecasts are conditional, not fixed outcomes—if inflation cools faster than expected or the Fed signals earlier cuts, the outlook could shift. For now, the projections suggest housing affordability pressure may persist rather than ease quickly.