By Mike Lentz | The Mike Lentz Team - Keller Williams Realty
Most forecasts say not by much. Fannie Mae, the Mortgage Bankers Association, and Wells Fargo expect rates to hold in a fairly flat range through 2027. For South Jersey buyers and sellers, that means planning around today’s rates instead of waiting for a drop. Home prices are forecast to keep rising, about 1% to 1.5% a year nationally.
Two questions sit behind most housing decisions right now:
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What’s next for mortgage rates?
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Where will home prices go from here?
If you are weighing a move in the next few months against waiting until 2027, the forecasts give a clear picture.
Experts looking ahead to 2027 see a steady housing market. No wild swings and no big surprises. Steady makes planning easier.
A steady market sits between the extremes. Our guide on how to tell if it is a buyer’s or seller’s market explains how to read conditions in your own county.
Will mortgage rates go down? Forecasts show a steady range
Many buyers are holding out for lower rates. The latest forecasts from Fannie Mae, the Mortgage Bankers Association (MBA), and Wells Fargo show rates holding fairly flat through 2027 (see graph below):
Lenders see it the same way. In a recent survey from HousingWire, 70% of mortgage executives said they expect rates around 7.5% or higher six months from now (see graph below):
The reason is fairly simple. Chen Zhao, Head of Economics Research at Redfin, says:
“Until the underlying economic fundamentals, everything from oil prices to AI, that are keeping rates high change, mortgage rates are unlikely to fall significantly.“
What you can control while rates hold
Even a good answer to will mortgage rates go down does not help your budget on its own. Focus on what you can control. Even if rates do not budge, you can still get the best rate available. Ask your lender about:
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Your credit score. Even a small bump in your score could lower your rate.
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Different loan types. Some programs have lower rates or smaller down payments than you might expect.
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Buying down your rate. Paying more upfront (called “points”) can lower your rate and your monthly payment.
Then you will know where you stand and what a comfortable monthly payment looks like.
Prices should keep climbing, just more slowly
What about prices? Here, steady works in your favor.
Even if you are still wondering will mortgage rates go down, experts do not see a home price drop coming. On average, forecasts from Fannie Mae, MBA, and Wells Fargo show prices rising about 1% to 1.5% a year through 2027 (see graph below):
In most places, prices are still going up, just not as fast. Sellers can expect their homes to hold value. Buyers get a little more breathing room from slower growth.
Buyers who keep asking will mortgage rates go down often assume waiting also means cheaper homes. The forecasts do not support that.
These are national numbers. Prices can look very different from one area to the next, whether you are in Camden, Burlington, Gloucester, Salem, or Cumberland County. What matters most is what is happening where you live.
Will mortgage rates go down enough to justify waiting?
When the market is steady, you do not have to time it perfectly. There is no big swing to wait out.
That puts the focus back on your life. Maybe you need more space for a growing family. Maybe you want less upkeep. A steady market makes it easier to plan for either one.
If you are selling, our guide to the best time to sell a house covers timing beyond the calendar.
Bottom line
If you are asking will mortgage rates go down, experts see a steady market through 2027. Rates should hold near today’s levels, and prices should rise slowly.
Rather than waiting for a big shift that may not come, we can run the numbers on what a move looks like at today’s rates and prices. Then you can decide based on your goals instead of the headlines.
If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
