Housing Market Predictions 2027: Flat Prices, Rates Above 7%

Fannie Mae, the MBA, Goldman Sachs and Zillow all expect a slow 2027: flat prices, weak sales, rates above 7%.

By Shivam Kaushik · Updated November 7, 2026 · 3 min read

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Quick answers

Home prices in 2027: roughly flat. The big forecasts range from about +0.5% to +1.1%.
Home sales: still weak, around 3.9 to 4.1 million existing-home sales.
Mortgage rates: expected to stay above 7% (Fannie Mae 7.5%, MBA above 7%).
Bottom line: a slow, stuck market in most places, not a boom and not a crash.

Updated November 2026 using October forecasts from Fannie Mae, the MBA, Goldman Sachs and Zillow.

Housing market predictions for 2027 have turned more cautious this fall. Mortgage rates jumped back above 7%, and forecasters cut their numbers for both prices and sales. Here is what the main forecasters now expect and what it means if you plan to buy or sell.

Housing market predictions 2027 at a glance

Forecaster	2027 home prices	2027 existing-home sales	2027 mortgage rate
Fannie Mae (Oct)	+0.6%	4.06 million	7.5% average
MBA (Oct)	+0.5% by late 2027	4.09 million	Above 7%
Goldman Sachs (Oct)	+0.8%	3.9 million	n/a
Zillow	About +1.1% (Sept 2026 to Sept 2027)	n/a	n/a

The long-run norm for national home price growth is roughly 4% to 5% a year. Every forecast above is well below that.

Home prices: flat, with big local differences

The MBA expects the median existing-home price to slip to about $410,000 in 2027 from about $418,000 in 2026. Fannie Mae sees its price index rising 2.7% in 2026 and just 0.6% in 2027.

National averages hide a lot. Parts of Florida, Texas and the West have had falling prices, while many Northeast and Midwest metros are still rising. Check your local market before you assume anything. Read more in home prices fall for the first time in three years.

Example

On a $418,000 home, 0.5% growth is about $2,090 for the whole year. That is less than one month’s mortgage payment for many buyers. Price gains alone will not make anyone rich in 2027.

Home sales: still stuck

Goldman Sachs expects 3.9 million existing-home sales in 2027, about 26% below 2019 levels. Fannie Mae and the MBA are a bit higher, near 4.1 million. The main reason is the lock-in effect: First American estimates about 88% of homeowners’ accessible equity sits on mortgages with rates below today’s market rate. Owners with 3% loans do not want to trade them for 7%.

Mortgage rates: the big swing factor

In September, Fannie Mae expected 6.7% for 2027. In October it raised that to 7.5%. That one change pushed down its sales forecast. Rates are the number to watch. Our 2027 mortgage rate forecast tracks every update.

Myth buster

Myth: “Flat prices mean homes are getting cheaper.” Reality: With rates above 7%, the monthly cost of buying the same house can still go up even if the price does not.

What this means for you

Buyers: less competition and more room to negotiate in many markets. Ask for seller credits toward closing costs or a rate buydown.
Sellers: price realistically. Homes priced above the market tend to sit.
Owners staying put: your equity is likely to hold roughly steady. A HELOC or home equity loan may beat a cash-out refinance at today’s rates.
First-time buyers: start with how mortgage rates work and our first-time buyer checklist.

FAQ

Will home prices go down in 2027?

Most major forecasts expect roughly flat national prices, between about +0.5% and +1.1%. Some local markets may see small declines.

Will 2027 be a good time to buy a house?

It may be easier to negotiate, but rates are expected to stay above 7%. Buy if the payment fits your budget at today’s rate, not a hoped-for rate.

Will the housing market crash in 2027?

No major forecaster predicts a crash. Foreclosures are rising but are still below pre-pandemic norms, and most owners have large equity cushions.

How many homes will sell in 2027?

Forecasts range from about 3.9 million (Goldman Sachs) to about 4.1 million (Fannie Mae and MBA) existing-home sales.

Sources: Fannie Mae October 2026 Economic and Housing Forecast; MBA October 2026 forecast; Goldman Sachs October 2026 US housing outlook (as reported); Zillow Home Value Index forecast (as reported); First American Q2 2026 accessible equity report. This article is general education, not financial advice. Keys & Coffee is not a lender.

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

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Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.