Interest rates are likely to edge lower in 2026 as the Fed weighs inflation, jobs and political pressure. See what forecasts suggest for the year ahead.

There's another Federal Reserve meeting on the calendar this month, but will mortgage rates fall once it's over?

Looking ahead to 2026, the Fed’s own median projection or “dot plot” suggested there would be only one additional 25 basis points cut. This would move the rate to around 3.25% to 3.50% by year end. Market expectations are slightly more dovish, calling for two rate cuts, which would push rates closer to 3%.

Further changes to the Federal Reserve's short-term interest rate will need to be "finely tuned" to incoming data given the risks to both the U.S. central bank's employment and inflation goals, Richmond Fed President Thomas Barkin said on Tuesday.

Thirty-year mortgage rates fell to a one-year low today. The current average mortgage rate on a 30-year fixed mortgage is 6.03% with an APR of 6.06%, according to the Mortgage Research Center. The 15-year fixed mortgage has an average rate of 5.

The Federal Reserve delivered Wall Street the holiday gift of a rate cut late last year, but policymakers seem to think that’s sufficient for the time being. Expert projections show that the most likely outcome is a total of two rate cuts in 2026, down from three last year.

The economy has had a volatile year marked by ongoing headwinds and uncertainties. Persistent inflation, unpredictability around tariffs, and a stock market that many fear is in the midst of an AI-fueled bubble are among the factors impacting consumers ...

JP Morgan no longer expects Fed rate cuts in 2026, now forecasting a 2027 hike. Goldman Sachs and Barclays delay cut predictions.

The report is the last of its kind before the Federal Reserve meets again in two weeks. With the employment report for December showing the unemployment rate sinking back to a relatively healthy 4.4 percent, officials are expected to hold interest rates steady after cutting them three times since September.

In 2026 the FOMC is expected to move interest rates slightly lower, with perhaps one or two cuts on current estimates.