Mortgage Rates Stuck Near 6.4% as New Housing Law Aims to Ease Affordability

Thirty-year fixed mortgage rates have held stubbornly near 6.4% through the summer, according to Fannie Mae's latest housing forecast, well above the levels many economists had projected for this point in the year. Zillow's own forecast similarly does not expect rates to dip below 6% before the end of 2026.

The persistence of elevated rates has kept homebuying affordability strained even as housing inventory has gradually improved from the historic lows seen earlier in the decade. Forecasts on home-price growth for the year vary, with some analysts projecting prices rising as little as 1.7% and Fannie Mae projecting growth closer to 3.2%.

A newly signed federal housing law aims to chip away at affordability pressures over time, though officials and housing economists have cautioned that its effects, focused on streamlining aspects of home construction and financing, are likely to phase in gradually rather than move rates or prices in the near term.

For now, most forecasters agree the risk of a broad housing market crash remains low, even as the combination of high rates and high prices continues to price out a meaningful share of would-be first-time buyers.