The days of 3% mortgages are behind us, but steady rates bring new opportunities for strategic buyers in 2026.

 Do you assume that every time the Fed cuts rates, your mortgage payment also shrinks? The reality is, even though the Fed has started cutting interest rates, that doesn’t always mean mortgage rates will follow. Today, I want to share why analysts expect mortgage rates to stay around 6% through 2026, and what that means for you as a buyer.

What’s happening with mortgage rates? Right now, rates have come down slightly from their 2024 peaks above 7%, but experts predict they’ll hold steady around 6% this year. This is because mortgage rates are tied more closely to long-term bond yields than to the Fed’s short-term rate changes. Those bond yields tend to stay elevated when inflation remains a concern.

So even if the Fed cuts short-term rates, mortgage lenders may not follow right away. In fact, many of those expected rate cuts are already priced in, meaning today’s rates already reflect where the market thinks things are headed.

“Steady rates bring stability, and that can be a real advantage for today’s buyers.”

If you’re waiting for rates to fall back to 3%, it’s important to remember that those levels were the result of the pandemic. Unless there’s another major economic shock, we’re unlikely to see that again.

A 6% mortgage rate isn’t bad historically. Buyers are adapting, sellers are adjusting, and the market feels steadier than it has in years. Homes are selling, buyers are making smart moves, and there’s less chaos than in the bidding wars of 2021 and 2022.

If rates ever do drop meaningfully, demand will likely surge, and we’ll be back to multiple offers and over-asking prices. So it may actually be better to buy now, while competition is manageable and rates are stable.

If you’d like to talk about how today’s rates affect your buying power, let’s sit down for a quick strategy session. We can look at your goals, current loan options, and the best way to make your next move in this market.

Visit AskSarita.com or contact me directly at (503) 522-0090, email me at sarita@asksarita.com to schedule your session. I’m always here to help you plan with confidence.