For months, prospective homebuyers and homeowners considering selling have been waiting for mortgage interest rates to fall.

But new reports from Fannie Mae, the Mortgage Bankers Association, and Windermere Real Estate suggest higher borrowing costs may remain part of the housing market for longer than many consumers expected.

According to CNBC's October 14, 2026 reporting, Fannie Mae raised its forecast for average 30-year fixed mortgage rates in 2027 from 6.7% to 7.5%.

The Mortgage Bankers Association also projects rates remaining above 7% through 2028, according to U.S. News & World Report.

At the same time, national pending home sales declined 8.5% year over year in September, according to Zillow data cited by CNBC.

Will Mortgage Rates Go Down in 2027 or 2028?

Mortgage rates may fluctuate, but the latest forecasts suggest they could remain elevated for several more years.

Sources: Fannie Mae Economic and Housing Forecast and U.S. News & World Report, October 14, 2026. Forecasts are projections and may change.

September inflation reached 3.7%, exceeding economists' forecast of 3.6%. Higher energy costs and persistent inflation have contributed to rising Treasury yields, which influence mortgage interest rates.

Windermere Principal Economist Jeff Tucker reported in an October analysis published by Inman that the 10-year Treasury yield had reached 5.28%, while Mortgage News Daily reported a 30-year fixed mortgage rate of 7.59% on October 7.

These figures help explain why waiting for significantly lower mortgage rates could take longer than anticipated.

Source: Inman: Mortgage Rates Surge as Housing Demand Cools.

Is the Housing Market Slowing Down Because of Higher Mortgage Rates?

Higher mortgage rates are contributing to weaker national buyer activity, but that slowdown is also changing available inventory and negotiating conditions.

According to Realtor.com's September 2026 national housing report, active listings increased 5.4% year over year to approximately 1.16 million homes.

Approximately 20.8% of active listings had experienced price reductions.

For financially prepared buyers, growing inventory may mean:

• More properties available for comparison.
• Potentially fewer competing offers on certain homes.
• Opportunities to negotiate purchase price or repairs.
• Possible seller contributions toward eligible closing costs or mortgage rate buydowns.

These opportunities vary by property and location. Well-priced homes can still attract strong interest.

Source: Realtor.com September 2026 National Housing Report.

Should You Buy a House Now or Wait for Lower Mortgage Rates?

Buying now may make sense if a home meets your needs, you have adequate financial reserves, and the total monthly payment is affordable.

Waiting may be appropriate if current borrowing costs stretch your budget.

However, mortgage rates are only one part of the cost of buying a home. Purchase price, property taxes, insurance, maintenance, and negotiated transaction terms can also affect affordability.

Example: Buying a $300,000 Home in Ohio

Consider a hypothetical home priced at $300,000 with a 10% down payment and a 30-year fixed mortgage at 7.5%.

If a buyer negotiates a $10,000 price reduction, the hypothetical monthly principal and interest payment decreases by approximately $63.

Illustrative 30-year fixed-rate loans at 7.5% with 10% down. Payments exclude taxes, insurance, mortgage insurance, HOA fees, and closing costs.

Waiting for a lower mortgage rate could improve financing costs, but it could also mean entering a market with different prices, inventory, and competition. Prices could increase, remain stable, or decline.

The important question is whether a home represents good value at a payment that works for your finances today.

Can You Buy a House Now and Refinance Later?

Potentially. If mortgage rates decline, eligible homeowners may be able to refinance an existing loan at a lower rate.

However, refinancing is not guaranteed and should never be required to make a home purchase affordable.

How Would Lower Mortgage Rates Affect Monthly Payments?

Illustrative calculations for separate new $250,000, 30-year fixed-rate loans at each rate. Excludes taxes, insurance, mortgage insurance, HOA fees, and closing costs. Not a refinance offer.

A one-percentage-point decrease from 7.5% to 6.5% would reduce the hypothetical monthly principal and interest payment by approximately $168 on otherwise identical new loans.

Actual refinancing savings depend on the remaining balance, new loan terms, closing costs, property value, available equity, and borrower qualifications.

Refinancing can also increase total interest expense if the repayment period is extended.

Should Ohio Homeowners Sell Now or Wait?

Higher mortgage rates can affect buyer purchasing power, but homeowners continue to move for employment, relocation, financial priorities, property maintenance, and changing housing needs.

For sellers, a slower market can make pricing and marketing strategy especially important.

Four Strategies for Selling in a Higher-Rate Market

1. Price for today's market. Use recent comparable sales, active competition, and property condition.
2. Present the home effectively. Professional photography, accurate information, appropriate repairs, and thoughtful staging help buyers evaluate the property.
3. Consider buyer financing concerns. Negotiated concessions may help address eligible closing costs or rate buydowns, subject to loan requirements.
4. Evaluate the entire offer. Purchase price, financing strength, contingencies, closing dates, and expected net proceeds all matter.

The national slowdown does not mean every property will struggle to sell. A competitive strategy should reflect the actual market for the specific home.

Ohio Housing Market 2026: What Higher Mortgage Rates Mean Across the State

Ohio housing markets are responding differently to elevated interest rates. Some regions continue to report higher median sale prices despite fewer transactions, while others are seeing increasing inventory and more price adjustments.

These local differences are essential when deciding whether to buy, sell, or wait.

What If You Already Have a 3% Mortgage Rate?

For homeowners with significantly lower existing mortgage rates, selling may mean replacing a lower-cost loan with more expensive financing.

That is a legitimate financial consideration, but it should be evaluated alongside accumulated equity, maintenance costs, replacement housing expenses, moving costs, and whether the current home continues to meet your needs.

For some homeowners, remaining in place will be financially advantageous. For others, the broader benefits of moving may justify the additional costs.

Understanding estimated net sale proceeds and available housing options is an important starting point.

Get an Estimate of Your Home's Value

Should You Buy, Sell, or Wait? Five Questions to Ask

1. Can you afford the full housing payment today? Consider principal, interest, taxes, insurance, maintenance, and other costs.
2. How competitive is your local market? Review comparable sales, inventory, days on market, and price adjustments.
3. Are there opportunities to negotiate? Consider property pricing, repairs, and eligible seller concessions.
4. What would waiting actually change? Rates, prices, inventory, and personal circumstances could all be different.
5. Does your current housing situation meet your needs? Financial considerations and long-term goals should both inform the decision.

The Bottom Line: Don't Make Your Entire Decision Based on a Mortgage Rate Forecast

Fannie Mae and the Mortgage Bankers Association expect borrowing costs to remain elevated for longer than many consumers anticipated.

At the same time, slowing national sales activity and changing Ohio housing inventory are creating different market conditions.

For some buyers, that may mean more choices and negotiating opportunities. For sellers, competitive pricing and effective marketing may be increasingly important.

Waiting may be the right decision. So might buying or selling today.

Understanding Mortgage Financing Options

Consumers are encouraged to compare mortgage programs, loan terms, interest rates, closing costs, and lenders to determine which financing options best meet their needs.

Glasshouse Mortgage is an affiliated mortgage business. Consumers are free to choose any mortgage provider and are not required to use Glasshouse Mortgage when purchasing or selling property through Glasshouse Realty.

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