Mortgage rate predictions for the next 5 years: A new data-powered forecast through 2031

Drawing on two decades in lending, I always keep a close eye on mortgage rate trends, especially as they shape the decisions of homebuyers and homeowners alike. According to the latest forecast stretching through 2031, mortgage rates—tied to the 10-year U.S. Treasury yield—are projected to hover around 6% in 2027, with a chance of a slow decline. If the economy manages a soft landing, we could see rates dip toward 5%; however, should inflation persist, rates might climb above 7%. I’ve seen cycles come and go since my early days at United Jersey Bank, and these shifts remind me just how important it is to stay informed and adaptable in our approach to lending.