Mortgage Rates Above 7% Through 2027? What Fort Lauderdale Buyers Should Know

By Kate Zhurko, Fort Lauderdale Realtor · Updated October 16, 2026

Quick answer: The Mortgage Bankers Association (MBA) expects the average 30-year mortgage rate to stay above 7% through the end of 2027. In Fort Lauderdale and Broward County, home prices are still holding steady, so buyers who want to move in the next year are focused on lowering their rate and comparing lenders rather than waiting for a big drop.

If mortgage rates feel scary this October, you're not imagining it. Freddie Mac's weekly average for a 30-year fixed loan has been at 7.40% for two straight weeks as of October 15, the highest in about three years.

And the latest forecast says relief will be slow. Here's what the experts expect, what it means for buying a home in Fort Lauderdale, and five questions to ask every lender you call.

What the Experts Expect for Mortgage Rates in 2026 and 2027

MBA Chief Economist Mike Fratantoni shared the group's new forecast at its annual conference in Chicago on October 11. It calls for:

• An average 30-year mortgage rate of 7.3% from October through December 2026
• Rates staying above 7% through the end of 2027

Fratantoni expects rates to ease from this spike, but not by much.

The main reason is inflation. It's running well above the Federal Reserve's 2% goal, and higher energy prices are a big part of the problem. The Fed raised its key interest rate last month for the first time in three years. MBA expects two more small increases: one in December 2026 and one in early 2027.

Mortgage rates tend to follow the 10-year Treasury yield, the return investors earn on 10-year government bonds. MBA expects that yield to average 5.1% this quarter and stay near 5% through 2027.

What 7%+ Rates Mean in Fort Lauderdale

Here's the part national headlines miss: higher rates haven't knocked down prices here.

• Single-family homes: The Broward County median sale price was $650,000 in July 2026, up 4.8% from a year earlier (MIAMI REALTORS).
• Fewer homes to choose from: Single-family listings were down about 25% from a year earlier, with 4.3 months of supply. That still leans toward sellers.
• Homes still sell quickly: The median single-family home went under contract in 34 days and sold for about 96% of its original list price.
• Condos are a different story: Broward had roughly 9,700 condos and townhomes for sale in the second quarter, about 10 months of supply (Florida Realtors Q2 report). Condo buyers have more choices and more room to negotiate.

To put rates in dollars: on a $650,000 home with 20% down, the principal and interest payment at 7.40% is about $3,600 a month. At 7.00% it's about $3,460. That $140 difference is why buyers are working hard to shave even a fraction of a point. Taxes, insurance and any HOA fees come on top, and in South Florida those can be a big part of the monthly cost.

How Buyers Are Lowering Their Rate Right Now

MBA Deputy Chief Economist Joel Kan says buyers still in the market are increasingly choosing adjustable-rate mortgages or paying points. ARMs made up almost 10% of loan applications over the past month, and MBA expects that share to stay above 9% through 2027.

• Adjustable-rate mortgage (ARM): You get a lower rate for a set number of years. After that, your rate can go up or down, so your payment could rise a lot.
• Mortgage points: You pay an upfront fee at closing to lower your rate for the life of the loan. You'll need more cash at closing.
• Seller credits (common in Fort Lauderdale right now): In a slower or condo-heavy segment, a seller may agree to cover some of your closing costs or a rate buydown. Your agent can negotiate this as part of your offer.

Which one fits depends on how long you plan to stay and how much cash you have. A lender can run the numbers on each option side by side.

Should You Wait to Buy?

If MBA is right, waiting for rates to fall well below 7% could mean waiting until 2028 or later. Meanwhile, a few national trends from the forecast are worth knowing:

• Home purchase activity is running about 9% below January levels.
• National home price growth has been around 2%. MBA expects it to slow in 2027 and pick up in 2028.
• MBA expects builders to start fewer new homes, which keeps supply tight.

In Broward, single-family prices are still rising and inventory is tight. Waiting for lower rates may mean paying more for the house. If you buy now and rates drop later, you may be able to refinance.

5 Questions to Ask Fort Lauderdale Mortgage Lenders

Rates and fees vary from one lender to the next, so talk to at least two or three. Bring these questions to every call:

1. How much would it cost to buy points, and how many years until the lower payment covers that cost?
2. If I choose an ARM, how long does the starting rate last, and how high could my payment go after that?
3. What rate and APR can you offer me on a 30-year fixed loan today?
4. What fees are included in your Loan Estimate?
5. How long can I lock my rate, and what happens if rates change before closing?

Buying a condo? Also ask whether the building meets Fannie Mae and Freddie Mac standards. Some South Florida condo buildings don't, which can limit your loan options or require a bigger down payment.

Ask each lender for a Loan Estimate, the standard form that lists your rate and closing costs. Lining them up side by side makes it much easier to compare.

Not sure who to call first? I'm happy to share a few local lenders my clients have had good experiences with. [LINK: contact page]

Frequently Asked Questions

What are mortgage rates in Fort Lauderdale right now? Mortgage rates are set nationally, so Fort Lauderdale buyers see rates close to the national average. Freddie Mac's 30-year fixed average was 7.40% as of October 15, 2026. Your own rate depends on your credit, down payment and loan type.

Will mortgage rates go down in 2027? The Mortgage Bankers Association expects only a small decline, with 30-year rates staying above 7% through the end of 2027.

Are home prices dropping in Fort Lauderdale? Not for single-family homes. The Broward County median was $650,000 in July 2026, up 4.8% from a year earlier. Condo prices have been flatter, and condo buyers have more inventory to choose from.

Is it better to get an ARM or buy points? Points usually make more sense if you plan to stay in the home for many years. An ARM can make sense if you expect to sell or refinance before the fixed period ends. Ask a lender to compare both for your situation.

Ready to Plan Your Fort Lauderdale Home Search?

Rates above 7% look likely to stick around for at least another year. Getting your loan questions answered early gives you a clear budget before you start touring homes.

If you're thinking about buying in Fort Lauderdale or anywhere in Broward County, reach out and I'll walk you through what your budget looks like at today's rates. Schedule a consultation with Kate Zhurko

Sources: Mortgage Bankers Association forecast, October 2026; Freddie Mac Primary Mortgage Market Survey; MIAMI REALTORS® July 2026 Broward statistics; Florida Realtors Q2 2026 Broward condo report.