Overview
Moving is a big deal, especially if you’ll be getting a mortgage to do it.
Mortgage rates are always in flux, and the rate you get on your loan can have a big impact on your monthly payment, your household cash flow, and your ability to meet your financial goals in the long run.
Are you planning to move in the near future? Here’s where mortgage rates have been trending, and what you can expect down the line as you shop for a new home.
Today’s Mortgage Rates
Mortgage rates were on a steady decline from mid-2025 to early 2026, but since late February, they’ve begun rising again. Currently, the average rate on 30-year, fixed-rate mortgages is 6.37%, according to Freddie Mac, tied for the second-highest rate this year.
On a $300,000 loan, that comes out to a payment of over $1,870 per month and more than $373,400 in interest across 30 years. As rates are always changing, you can calculate your payment here.
It sounds high, but rates aren’t anywhere near their peak yet. In early 2025, rates reached over 7% at one point. And back in the ‘80s? They were more than 18%.
Where Mortgage Rates Are Headed
The Mortgage Bankers Association predicts that mortgage rates will fall slightly by the end of the year, but not by much. In fact, by the end of 2026, MBA forecasts an average 6.2% rate on 30-year loans, according to its latest forecast. Fannie Mae predicts rates will fall a bit more, to 6.1% by year’s end. Both expect those rates to continue into 2027, too.
A lot will depend on where inflation heads and what the Federal Reserve does with interest rates as a result. Mortgage rates tend to move in the same direction as the Fed’s rate, so if inflation continues rising and the Fed increases interest rates to tame it, mortgage rates could jump, too. If inflation recedes, on the other hand, the Fed might cut rates, and rates on mortgages and other products could drop as well.
Generally speaking, long-term mortgage rates tend to hover around three percentage points higher than the Fed rate. Right now, for example, the Fed rate range is 3.50% to 3.75%, while the average 30-year mortgage rate is 6.37%.
According to the CME Group’s FedWatch tool, the Fed is largely expected to hold rates steady on rates for the rest of the year.
What It Means For Movers
For movers, these forecasts generally mean you can expect rates (and payments) to remain about where they are today if you’re purchasing your home this year or next. Just keep an eye on home prices, because as these rise, your payments and interest costs can, too.
Typically, spring and summer are the hottest times to buy a house, so home prices may be inflated during these seasons. Waiting until things slow down in fall or winter may allow you to snag a lower price and payment.
If you’re planning to sell an existing home and buy a new one, there are some extra considerations to take into account. For one, you’ll want to look at your current mortgage loan and the rate that’s attached to it. If you have a really low rate (think two, three, or even four percentage points below today’s averages), then buying a home at today’s rates can really cost you. It may be better to invest in renovating your home instead, so you’re not spending significantly more on interest.
You should also think about how much profit you’d likely make on your home. If it’s a lot, you might be able to make a very large down payment, minimize how much you borrow on your new loan, and snag a lower payment despite today’s rates.
The Point
There’s no crystal ball, so despite what experts say now, mortgage rates could go anywhere. The most important thing you can do is run the numbers and make sure they work for your specific situation.
You’ll want to make sure that not only do the rate and payment work for your budget, but that you have enough free cash to continue saving, investing, or working toward any other financial goals you might have set. Use an online mortgage calculator to estimate your payments yourself, or talk to a mortgage broker or loan officer for more personalized guidance.
by your friends at The Daily Navigator
