What Will Mortgage Rates Look Like in 2026 Under the Trump Administration?

Core Insights - The housing market is experiencing confusion with high mortgage rates despite cooling interest rates, leading experts to suggest preparing down payments for future opportunities [1] - Mortgage rate forecasts for 2026 predict a gradual decline, with the 30-year fixed rate averaging between 6% and 6.5%, while home prices are expected to rise slowly between 1% and 2% [2] - The unpredictability of the Trump administration's economic policies could introduce volatility in the housing market, affecting mortgage rate forecasts [3][4] Mortgage Rates Outlook - Experts anticipate a slight dip in mortgage rates from 2025 highs, providing minor savings for potential homebuyers [2] - The Trump administration's influence on the Federal Reserve could lead to a more aggressive rate-cutting approach, potentially lowering mortgage rates [4] Economic Policies Impact - Tariffs on imported goods may increase inflation and homebuilding costs, keeping mortgage rates elevated due to the Fed's focus on price stability [5] - The One Big Beautiful Bill Act (OBBBA) could increase the U.S. government's debt burden, leading to higher yields on government debt and upward pressure on long-term interest rates and mortgage rates [6]