The chief economist of the Mortgage Bankers Association expects mortgage rates and inflation to stay elevated through 2026, a forecast that signals a prolonged period of high housing costs. Mike Fratantoni predicts inflation will hover near 4% next year, a level that would keep pressure on the Federal Reserve to maintain its current policy stance.
This outlook suggests affordability challenges will persist across all major housing markets. Regions already struggling with high prices and limited inventory are unlikely to see relief from rising financing costs.