What Experts Are Forecasting for the 2027 Housing Market

By Rieder Homes

Dennis and Mance Rieder are the dynamic father-and-son duo behind Rieder Team Realty, bringing decades of combined experience and a genuine passion for the San Diego real estate market.

Every year around this time, the predictions start flying. The housing market is about to crash. Mortgage rates are about to tumble. Some huge shift is right around the corner. If you’ve been trying to decide whether to buy or sell, all that noise can leave you frozen, unsure what to believe or what to do.

So let’s set the loud headlines aside and look at something more useful: what the experts who actually study this market for a living are forecasting for 2027. Three of the most trusted names in housing, Fannie Mae, the Mortgage Bankers Association, and Realtor.com, have each shared their outlook. Put together, their forecasts tell a much calmer and more practical story than the headlines do.

Prices should keep rising, just slowly. The most important thing to know is that almost no major forecaster expects home prices to fall next year. What they expect instead is for prices to keep climbing, just at a much gentler pace than we’ve seen recently.

Fannie Mae expects prices to rise only about 1% in 2027. A broader survey of housing experts lands a little higher, closer to 2%. Those are small increases, but they’re still increases, not drops.

In plain terms: the crash so many people are bracing for simply isn’t in the forecast. The experts see prices rising slowly, not falling off a cliff. For anyone waiting on the sidelines for a big price drop, that’s an important reality check.

Mortgage rates are the real question mark. If there’s genuine uncertainty in the 2027 outlook, this is where it lives. As of October, the average 30-year rate had climbed above 7%, the highest it had been in over a year, and the experts don’t agree on where it goes next.

On one side, Fannie Mae expects rates to ease back down to around 6.7% next year. On the other, the Mortgage Bankers Association expects rates to stay above 7% through 2027. So one major forecaster sees a little relief coming, and another sees rates holding high. Even the experts are split.

But here’s where they all agree, and it matters: nobody expects a return to the super-low rates from a few years ago. If your whole plan has been to wait for rates to fall back to where they were, the people who study this don’t see that happening. That’s a bet the experts wouldn’t make.

The smartest move is about you, not the market. So what does all of this mean for you? When prices are expected to move slowly and rates could go either way, waiting around for some dramatic change usually doesn’t pay off. If you’re holding out for a crash that isn’t coming, or for rates to drop to a level nobody’s predicting, you could end up putting your life on hold for a moment that never arrives.

The better question isn’t “what will the market do next year?” It’s “does making a move make sense for me, my family, and my budget right now?” A steady, predictable market like this one is actually a good backdrop for that kind of decision, because you’re not trying to guess where things are headed. You already have a clear picture.

If you’d like to talk through what the 2027 outlook means for your specific situation, that’s exactly the kind of conversation we’re here for. Reach out at 858-779-0823, email us at info@riederhomes.com, or visit riederhomes.com, and we’ll look at where you stand clearly, without the noise. You don’t have to time this perfectly. You just have to understand it.