Will Mortgage Interest Rates Go Down In 2026. They had previously forecast that interest rates would fall to 3 per cent. The current median projection among the central bank’s top minds is that the federal funds rate will average 3.4% in 2025 and 2.9% in 2026, down 1% in the next year and 1.5% in the long.

Mortgage rates have more than doubled from recent lows in 2021. The current median projection among the central bank’s top minds is that the federal funds rate will average 3.4% in 2025 and 2.9% in 2026, down 1% in the next year and 1.5% in the long.