With mortgage rates still hovering above 6% and homebuyers wondering if they should wait for better terms, I asked ChatGPT to analyze what experts are predicting for mortgage rates throughout 2026.
The artificial intelligence pulled from multiple forecasting agencies, economic indicators and housing market analysts to paint a picture of where rates are headed. The short version? They’re likely to drift lower, but don’t expect a dramatic plunge.
Where Rates Stand Right Now
ChatGPT reported that as of January 2026, the average 30-year fixed mortgage rate sits around 6.09% to 6.19%. That’s near the lowest point in more than three years, but still significantly higher than the ultra-low rates borrowers enjoyed in the early 2020s.
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The 2026 Forecast: Modest Improvement
The AI’s overall takeaway was that mortgage rates will ease modestly in 2026 but won’t collapse back to pandemic-era lows. Most forecasts ChatGPT analyzed put the average 30-year rate somewhere between 6.0% and 6.3% for the year.
Some projections get more optimistic, suggesting rates could dip below 6% by mid- or late 2026, potentially reaching the 5.7% to 5.9% range at certain points. But ChatGPT cautioned that these lower rates would likely be brief windows rather than sustained levels.
Different Agencies See Different Outcomes
ChatGPT highlighted that not everyone agrees on exactly where rates will land. Fannie Mae expects rates to end 2026 around 5.9%, while the Mortgage Bankers Association predicts something closer to 6.4%. Other analysts from Redfin and the National Association of Home Builders see rates landing between 6.1% and 6.3%.
The range of predictions shows there’s real uncertainty about how economic factors will play out over the next year.
What’s Actually Driving These Predictions
ChatGPT broke down three main factors influencing where mortgage rates are headed.
Federal Reserve Policy
The AI explained that while mortgage rates don’t move in lockstep with the Federal Reserve’s benchmark rate, Fed policy still matters. Rate cuts from the Fed in 2024 and 2025 helped push long-term rates lower. If the Fed cuts rates or holds steady in 2026, that could support small declines in mortgage costs.
But ChatGPT pointed out that the 10-year Treasury bond is actually the biggest driver of mortgage pricing, and those yields remain relatively high compared to pandemic lows.
Inflation and Economic Conditions
If inflation continues to moderate, that could support lower rates. But strong jobs data or persistent inflation might keep yields and mortgage rates higher than hoped. The AI made it clear that economic surprises in either direction could shift rate predictions quickly.
Housing Market Dynamics
ChatGPT noted that if rates do drop below 6%, that could stimulate both homebuying demand and refinancing activity. But inventory levels, home prices and broader economic growth will also influence where rates ultimately settle.
What This Means for Buyers and Refinancers
The AI laid out what different rate scenarios would mean for people trying to time their moves.
If rates drop into the mid-5% range, borrowers would see meaningful monthly payment savings compared to early 2025 rates. If rates hover closer to 6.2%, it means better affordability than recent peaks, but still tight borrowing costs compared to the pre-pandemic era.
ChatGPT warned against trying to perfectly time the market. Forecasts vary widely, and unexpected events like inflation surprises, Fed policy shifts or global economic shocks can push rates up or down quickly.
The Bottom Line
ChatGPT’s summary was straightforward: Expect mortgage rates in 2026 to trend slightly lower than late 2025, average somewhere near 6.0% to 6.3% nationally, and possibly dip below 6% briefly without dropping dramatically lower.
The AI said this means rates may be more buyer-friendly than recent peaks, but they’ll still sit well above the historically low levels borrowers enjoyed before 2021. For anyone waiting for a return to 3% or 4% mortgages, ChatGPT’s analysis suggested that’s not happening anytime soon.
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This article originally appeared on GOBankingRates.com: I Asked ChatGPT What Will Happen To Mortgage Rates in 2026 — Here’s the Prediction
