How Mortgage Rates Are Determined

Want lower mortgage rates? One economic “X factor” could give them to us. It’s time for our 2026 mortgage rate predictions! 

Is this the year we get back into the 5% mortgage rate range? It might be more likely than you think. But two things are currently holding mortgage rates in limbo, keeping the housing market “stuck” as buyers beg for a more affordable interest rate. These crucial factors could finally budge, and if/when they do, big changes to mortgage rates could follow. 

For four years, Dave has been sharing his mortgage rate forecast leading up to the new year—and he’s been right almost every time. But we’re not just sharing Dave’s take. We’ll also give you mortgage rate forecasts from top economists at Fannie Mae, NAR, and more.

Waiting for lower mortgage rates? Stick around to see if Dave’s prediction is what you want to hear. 

In This Episode We Cover

2026 mortgage rate predictions and whether we’ll get back into the 5% range 

The “X factor” that could send mortgage rates into a free fall 

The two things keeping mortgage rates “stuck” right now (and whether they’ll move)

A desperate move from the Federal Reserve to lower mortgage rates that could cause massive ripple effects throughout the economy 

Interest rate forecasts from top mortgage and real estate organizations 

And So Much More!

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