15-Year Mortgage Rate Forecast for the Next 5 Years: 2025-2029

Are you thinking about buying a home or refinancing your mortgage? If so, understanding where interest rates might be headed is crucial. So what's the definitive answer/statement on the 15-Year Mortgage Rate Forecast for the Next 5 Years? According to projections, we can expect a general downward trend in rates through 2028, followed by a gradual increase towards the end of the decade. While no one has a crystal ball, let's dive deep into a year-by-year breakdown based on current forecasts and the economic factors that could influence these rates, while trying to discuss all aspects that might interest you.

15-Year Fixed Mortgage Rate Forecast for the Next 5 Years: 2025-2029

Why the 15-Year Mortgage Matters

Before we jump into the numbers, let's quickly discuss why the 15-year mortgage is such a popular choice. It offers a sweet spot between the shorter 10-year term and the more common 30-year option. Here's a quick rundown:

• Faster Equity Building: You pay off your home in half the time compared to a 30-year mortgage. Imagine owning your home outright in just 15 years!
• Lower Interest Paid Over the Life of the Loan: Because you're paying it off faster, you save a significant amount on interest. This can translate to tens of thousands of dollars over the life of the loan.
• Higher Monthly Payments: The tradeoff? Higher monthly payments. But if you can comfortably afford it, the long-term savings are well worth it.

Now, let's get to the main point of why you are here – Let's analyze the projected 15-year mortgage rates from 2025 to 2029 based on forecasts.

Year-by-Year 15-Year Mortgage Rate Forecast (2025-2029)

Alright, let's get down to the nitty-gritty. I've compiled a breakdown of the projected 15-year mortgage rates for the next five years based on projections from the Economy Forecast Agency (EFA) (Updated on 2025/07/03). Remember, these are forecasts, not guarantees, and unforeseen economic events can definitely throw things off course. Always consult with a financial advisor for personalized advice.

2025 Predictions: A Year of Initial Declines

• Current (July 2025): 5.8%
• July: 5.44-5.96% (Close: 5.61%) – A promising start with a drop.
• August: 5.53-5.87% (Close: 5.70%) – A slight uptick.
• September: 5.37-5.71% (Close: 5.54%) – Further decline.
• October: 5.40-5.74% (Close: 5.57%) – Stability around the mid-5% range.
• November: 5.18-5.57% (Close: 5.34%) – A more significant drop.
• December: 4.99-5.34% (Close: 5.14%) – Finishing the year on a lower note.

Key Takeaway for 2025: The forecast suggests a consistent downward trend throughout the year, potentially driven by anticipated Federal Reserve actions to combat inflation. If you're looking to buy or refinance, the latter half of 2025 might present some favorable opportunities.

2026 Predictions: Continued Descent

• January: 5.01-5.31% (Close: 5.16%) – Holding steady.
• February: 4.98-5.28% (Close: 5.13%) – Minimal change.
• March: 4.99-5.29% (Close: 5.14%) – Still hovering around 5%.
• April: 4.76-5.14% (Close: 4.91%) – Breaking below 5%.
• May: 4.63-4.91% (Close: 4.77%) – Continued decline.
• June: 4.26-4.77% (Close: 4.39%) – A larger drop, signaling potentially bigger savings.
• July: 4.17-4.43% (Close: 4.30%)
• August: 4.10-4.36% (Close: 4.23%)
• September: 4.07-4.33% (Close: 4.20%)
• October: 4.04-4.28% (Close: 4.16%)
• November: 3.95-4.19% (Close: 4.07%)
• December: 3.80-4.07% (Close: 3.92%) – End year below 4%.

Key Takeaway for 2026: The trend continues downward, with rates potentially dipping below 4% by the end of the year. This could be a prime window for those looking to lock in a low rate.

2027 Predictions: Bottoming Out

• January: 3.63-3.92% (Close: 3.74%) – Start year just below 4%.
• February: 3.35-3.74% (Close: 3.45%) – Significant dip.
• March: 3.30-3.50% (Close: 3.40%)
• April: 3.39-3.59% (Close: 3.49%)
• May: 3.48-3.70% (Close: 3.59%)
• June: 3.41-3.63% (Close: 3.52%)
• July: 3.42-3.64% (Close: 3.53%)
• August: 3.33-3.53% (Close: 3.43%)
• September: 3.24-3.44% (Close: 3.34%)
• October: 3.07-3.34% (Close: 3.17%) – Lowest rates being seen by now.
• November: 3.06-3.24% (Close: 3.15%)
• December: 2.74-3.15% (Close: 2.82%) – Rates below 3%.

Key Takeaway for 2027: Rates continue to decline further to unbelievable lows. These lower rates reflect a potentially slow global economy and the lasting impacts of earlier monetary policies.

2028 Predictions: A Potential Turning Point

• January: 2.69-2.85% (Close: 2.77%) – Continued lows.
• February: 2.50-2.77% (Close: 2.58%)
• March: 2.48-2.64% (Close: 2.56%)
• April: 2.43-2.59% (Close: 2.51%)
• May: 2.38-2.52% (Close: 2.45%) – Lowest rates.
• June: 2.18-2.45% (Close: 2.25%) – Rates at rock bottom now.
• July: 2.19-2.33% (Close: 2.26%)
• August: 2.13-2.27% (Close: 2.20%)
• September: 2.20-2.58% (Close: 2.50%) – Increase in rates.
• October: 2.50-3.04% (Close: 2.95%) – Sharp rise.
• November: 2.95-3.28% (Close: 3.18%)
• December: 3.18-3.59% (Close: 3.49%) – Rates start to increase.

Key Takeaway for 2028: Significant volatility. Watch out for this year, as rates could start rising again as the economy picks up.

2029 Predictions: Gradual Increase

• January: 3.46-3.68% (Close: 3.57%) – Increasing rates.
• February: 3.57-3.85% (Close: 3.74%)
• March: 3.70-3.92% (Close: 3.81%)
• April: 3.73-3.97% (Close: 3.85%)
• May: 3.85-4.14% (Close: 4.02%) – Rates at about 4%
• June: 3.72-4.02% (Close: 3.83%) – Slight dip but still increasing.

Key Takeaway for 2029: Rates gradually increase. This could signify a strengthening economy.

Here's a quick table summarizing the year-end 15-Year Fixed Rate Mortgage forecasts:

Year	Forecasted 15-Year Mortgage Rate (Year-End)
2025	5.14%
2026	3.92%
2027	2.82%
2028	3.49%
2029	3.83%

Factors Influencing Mortgage Rates: The Big Picture

It's not enough to just look at the numbers. You need to understand what influences them. Mortgage rates are complex and depend on a variety of factors, I would discuss the main ones here:

• The U.S. Economy: A strong economy generally leads to higher interest rates because the demand for borrowing increases. Conversely, a weaker economy can lead to lower rates to stimulate borrowing and investment.As per the data available for the economy in July 2025, the US economic growth is expected to slow down in 2025, forecasts from organizations like Morgan Stanley and the IMF point to growth around 1.5% to 1.8%
• Inflation: Inflation is a major player. When inflation is high, lenders demand higher interest rates to protect their returns.The annual inflation rate in the US stood at 2.4% in May 2025. The inflation is expected to have a downward trend partly due to the new tariffs.
• Federal Reserve (The Fed): The Fed's monetary policy has a huge impact on interest rates. The Fed influences rates by setting the federal funds rate (the rate at which banks lend to each other overnight). Changes in this rate ripple through the economy, affecting mortgage rates.The Fed has been holding interest rates steady at a target range of 4.25% to 4.50% and is expected to shift in second half of 2025.
• The Bond Market: Mortgage rates are often tied to the yield on the 10-year Treasury bond. When bond yields rise, mortgage rates tend to follow suit.The 10-year US Treasury yield reached 4.76% in February 2025, its highest level since November 2023.

My Personal Thoughts

Having watched the mortgage market for years, I've learned that predicting the future is tough! Economic cycles are unpredictable, and unexpected events (like global pandemics or geopolitical tensions) can throw even the most sophisticated models off track.

That said, I believe understanding the underlying factors is crucial. If inflation remains in check, and the Fed adopts a more dovish stance (meaning they're more inclined to lower rates to stimulate the economy), we could indeed see the lower rates that are being forecasted.

However, keep a close eye on the bond market. Any signs of rising bond yields could signal an increase in mortgage rates. And remember, the housing market itself plays a role. Strong housing demand can put upward pressure on rates.

Strategies for Homebuyers and Refinancers

So, what should you do with this information? Here are a few strategies:

• If you're considering buying, don't try to time the market perfectly. Focus on finding a home you love and can afford. If rates do drop, you can always refinance later.
• If you want to refinance, keep a close watch on the forecasts. If rates are projected to fall, you might want to wait. But don't wait too long, as markets can change quickly.
• Consider locking in a rate. If you find a rate you're comfortable with, talk to your lender about locking it in. This protects you from potential rate increases.
• Shop around for the best rates. Don't just settle for the first offer you receive. Get quotes from multiple lenders to ensure you're getting the best deal.
• Work with a qualified mortgage professional. A good mortgage broker or lender can help you navigate the complexities of the market and find the right loan for your needs.

The Bottom Line

The 15-Year Mortgage Rate Forecast for the Next 5 Years suggests a period of declining rates, followed by a potential gradual increase. While these forecasts are valuable, it is important to remember not to hold any forecast as the ultimate truth and that the economy remains very uncertain and ever-changing. Understanding the factors that influence these rates and developing a sound financial strategy helps you make informed decisions about buying or refinancing your home and setting yourself up for financial success.