Will Mortgage Rates Hit 8%? Zillow’s Chief Economist Breaks It Down

Will Mortgage Rates Hit 8%? Zillow’s Chief Economist Breaks It Down

Buyers waiting for big savings on mortgage rates may be overestimating the payoff. On the same morning a disappointing CPI report pushed yields higher, Zillow Chief Economist Mischa Fisher sat down with James Dwiggins on Real Estate Insiders Unfiltered (recorded live at Zillow Unlock 2026) and laid out the realistic path ahead.

Fisher put the odds of rates reaching 8 percent at roughly 25–30 percent. Zillow’s forecast calls for rates to ease slightly over the next 12 months, even as he expects additional Fed rate hikes. Much of the rise in the 10-year yield, he said, has already occurred.

Why Inflation Is Still Sticky

High diesel and energy prices are filtering into everyday goods, and Fisher described inflation as behaving like a snowball—once it gains momentum, it takes time to slow. This cycle is also hitting a housing market that was already weak, which changes the usual dynamics.

What Waiting Actually Saves

Research highlighted in the discussion shows a typical buyer saves only about $26 a month by waiting a year. That’s roughly the cost of a streaming subscription. Meanwhile:

• Home values continue to rise.
• A 30-year fixed rate can be locked for the life of the loan.
• Buyers currently have more inventory and negotiating room than they’ve had in years.

Fisher’s take: this is not the moment to put major life plans on hold for minimal monthly savings.

2027 Outlook and Private Listings

If rates stay near current levels, Fisher expects existing home sales in 2027 to finish flat to slightly down. On the private-listing question, Zillow’s data shows homes sold off-market tend to sell below their estimated value. With fewer buyers seeing the home and weaker matching, sellers usually lose out.