NewsMV
The wait-for-rates-to-fall trade in housing has a 2027 problem. Mortgage rates are not expected to get much cheaper for homebuyers next year.
The forecast carries an explicit conditional: if inflation stays high, the case for meaningfully lower borrowing costs does not hold. That conditional is not a caveat buried in the fine print.
It is the load-bearing element of the entire 2027 outlook. Buyers sitting on the sideline on the assumption that affordability resets next year are implicitly making a call on inflation coming down.
That is a position, and it carries risk. Affordability in the housing market moves with two variables in tandem: prices and financing costs. If rates stay elevated because inflation does, neither tilts toward the buyer.
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