When it comes to the housing market, two big questions are on everyone’s mind right now:
What can we expect from mortgage rates?
What’s ahead for home prices?
And if you’re thinking about moving in the coming months or waiting until 2027, here’s what you need to know.
Looking ahead to 2027, experts expect the housing market to remain steady. No major ups and downs, just a more stable and balanced market.
And when the market is steady, it’s much easier to plan your next move. Let’s take a closer look.
Rates Are Expected To Settle into a Steady Range
Many buyers are waiting for mortgage rates to come down. But the latest forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo suggest that rates will stay relatively steady through 2027 (see graph below):
Lenders are seeing a similar trend. In a recent HousingWire survey, 70% of mortgage executives said they expect rates to be around 7.5% or higher over the next six months (see graph below):
If you’re wondering why, the explanation is pretty simple. Chen Zhao, Head of Economics Research at Redfin, explains:
“Whatever it is, the way you tell your story online can make all the difference.”
So what does this mean for you? Instead of worrying about where mortgage rates are headed, focus on what you can control. Even if rates stay the same, there are still ways to get a better deal. Talk to your lender about:
Your credit score. Even a small improvement could help you qualify for a lower rate.
Different loan options. Some programs may offer lower rates or smaller down payments than you think.
Buying down your rate. Paying a little more upfront, known as points, could help lower your interest rate and monthly payment.
This helps you understand your options and figure out what monthly payment works best for your budget.
Prices Should Keep Climbing, Just More Slowly
But what about home prices? This is where a steady market can work in your favor.
Experts aren't expecting home prices to drop. In fact, forecasts from Fannie Mae, MBA, and Wells Fargo show prices increasing by about 1% to 1.5% per year through 2027 (see graph below):
Simply put, home prices are still expected to rise in most areas, just at a slower pace. Sellers can feel more confident that their home is holding its value, while buyers may have a little more time and flexibility. Just keep in mind that waiting doesn't necessarily mean you'll find lower prices.
Just remember, these are national predictions. Home prices can vary quite a bit depending on the area, so what really matters is what’s happening in your local market.
The Best Time To Move Is When It Fits Your Life
When the market is steady, you don’t have to worry about finding the perfect time to make a move. There’s no major market shift you need to wait for.
That means your next move can be based on what works best for you. Maybe you need more room for your growing family, or perhaps you’re ready for a home that’s easier to maintain. Either way, a steady market makes planning a little easier.
Bottom Line
If you’re wondering whether to move now or wait, keep in mind that experts expect the market to stay steady through 2027, with mortgage rates staying close to current levels and home prices continuing to rise gradually.
Instead of waiting for a major market change that may never happen, let’s look at what buying or selling could look like with today’s rates and prices. That way, you can make a decision based on what works best for you, not just what the headlines say.
