Everyone Wants to Know What Happens Next: Mortgage Rates, Home Prices and AI Are Changing Real Estate

First: How High Are Mortgage Rates Going?

As of September 24, 2026, Freddie Mac reported that the average 30-year fixed mortgage rate had risen to 7.03%, up from 6.95% the previous week.

That marked five consecutive weeks of increases.

A year earlier, the average was 6.30%.

That matters.

On a $400,000 mortgage, relatively small movements in interest rates can materially change a buyer’s monthly payment and purchasing power.

But here’s something I want buyers to understand:

The Federal Reserve does not directly set your mortgage rate.

Mortgage rates are influenced by the bond market, inflation expectations, economic growth, Federal Reserve policy and investors’ expectations about where all of those things are headed.

That means waiting for a Fed announcement doesn’t necessarily tell you what mortgage rates are going to do next.

Sometimes mortgage markets have already priced an expected Fed move before the Fed ever makes it.

The Mortgage Bankers Association currently expects mortgage rates to remain around present levels, forecasting an average near 6.8% in the coming quarters.

Could rates fall below that?

Absolutely.

Could they go higher?

Absolutely.

That’s the part nobody can promise you.

What If I’m Waiting for 5% Mortgage Rates?

This is probably the conversation we need to have more often.

There is nothing wrong with hoping rates come down.

I hope they do too.

But hope isn’t a financing strategy.

If your entire home-buying plan requires mortgage rates to fall to 5%, you’re making a major financial decision based on something neither you, I nor anyone on television controls.

Instead, I would rather ask:

What would make the home affordable today?

Maybe that’s a different price point.

Maybe it’s negotiating seller concessions.

Maybe it’s comparing several loan structures.

Maybe it’s changing the down payment.

Maybe it’s improving credit.

Maybe it’s shopping homeowners insurance before making an offer.

Maybe it’s looking at the entire monthly housing expense instead of becoming obsessed with one number called the interest rate.

And maybe the numbers simply don’t work yet.

That’s okay too.

Sometimes the best mortgage advice I can give someone is that we should wait.

But I want that decision based on their numbers, not a prediction about where rates might be next spring.

Okay Edgar, But Aren’t Home Prices About to Crash?

Let’s look at what is actually happening.

Fannie Mae’s Q3 2026 Home Price Expectations Survey asked more than 100 housing experts and economists where they believe national home prices are headed.

Their average forecast:

2026: +2.5%

2027: +2.2%

2028: +2.7%

Forecasts can absolutely be wrong.

But that’s very different from the widespread national housing crash some buyers have been waiting for.

And Florida’s latest numbers deserve attention too.

In August 2026, Florida’s median single-family sale price was approximately $415,000, just over 1% higher than a year earlier.

Condo and townhouse median prices were up nearly 3%.

At the same time, Florida’s single-family inventory actually fell 13% year over year.

That’s important because housing prices ultimately have a lot to do with supply and demand.

But Florida Is Not One Housing Market

This might be one of the most important things I can teach buyers.

There isn’t really one “Florida housing market.”

There are thousands of little markets.

Port St. Lucie can behave differently from Tampa.

Tampa can behave differently from Wellington.

Wellington can behave differently from Palm Beach Gardens.

And even inside the same city, a $275,000 condo can behave completely differently from a $750,000 single-family home.

For example, September data for Port St. Lucie showed a median sold price around $410,000, approximately 0.6% higher than a year earlier, while active listings were down from a year ago.

Tampa has seen more price softness, with August median asking prices down from the prior year.

Both things can be true simultaneously.

That’s why headlines like “Florida Home Prices Are Falling” or “Florida Home Prices Are Rising” can be technically true somewhere and completely useless to the family trying to decide whether to buy a particular house on a particular street.

Real estate doesn’t happen nationally. Your home happens locally.

So Could Home Prices Still Fall?

Of course.

Housing isn’t guaranteed to appreciate every year.

A recession, rising unemployment, dramatically higher mortgage rates, increasing inventory, insurance costs, changes in migration or local economic conditions can all put downward pressure on prices.

Certain cities, neighborhoods and property types can decline even while national prices rise.

That’s why I wouldn’t buy a home simply because someone told me prices are going up.

But I also wouldn’t refuse to buy solely because someone on social media promised me a crash is coming.

I’d ask a different question:

If the value of this house didn’t increase for the next three years, would buying it still make sense for my family?

Now we’re talking about something we can actually evaluate.

Payment.

Cash reserves.

Length of time you expect to live there.

Taxes.

Insurance.

HOA.

Maintenance.

Location.

Lifestyle.

And what renting the alternative would cost.

Those things matter more to me than someone’s housing-market prediction.

And Then There Is AI

This may actually become the biggest change of all.

AI is already entering real estate.

People are using it to research neighborhoods, compare homes, understand terminology, analyze affordability and ask questions they might previously have waited to ask an agent or mortgage professional.

Realtor.com reported that 82% of Americans surveyed were already using AI for real estate information.

In late 2025, Realtor.com launched an AI home-search experience that lets buyers search conversationally based on things like budget, commute, monthly payment and lifestyle preferences.

The mortgage industry is changing too.

AI can increasingly assist with things like document review, data reconciliation, fraud detection, compliance, income and employment verification and other parts of the mortgage process.

Fannie Mae issued a formal AI and machine-learning governance framework in 2026 for lenders using these technologies in mortgage origination and servicing.

So yes:

AI is going to change mortgages and real estate.

It already has.

Is AI Going to Replace Your Realtor or Mortgage Broker?

I think that’s the wrong question.

The better question is:

What parts of their jobs shouldn’t require a human anymore?

Typing information from one place into another?

Probably not.

Searching thousands of data points?

Probably not.

Producing a basic property description?

Probably not.

Organizing documents?

Increasingly, probably not.

But consider the questions that actually matter during a home purchase.

Should we stretch another $30,000 for this particular house?

Should we ask the seller for a price reduction or closing-cost credit?

Why did underwriting suddenly question this deposit?

Should I put another 5% down or keep that money in reserves?

The inspection found something. Should we still move forward?

My appraisal came in low. Now what?

My spouse is nervous. Are we making a mistake?

Those aren’t simply information problems.



They’re judgment problems.

And the more information AI gives consumers, the more valuable I believe judgment, experience and trust become.

Interestingly, even while consumers increasingly use AI for housing information, Realtor.com research found that real estate agents remained the source consumers considered the most trusted and accurate for housing-market information.

That tells us something.

People want technology.

But when hundreds of thousands of dollars and their family’s home are involved, they still want someone they trust sitting beside the technology.

AI May Actually Make Buyers More Powerful

This is the part I’m excited about.

For decades there has been an information imbalance in real estate and mortgages.

Professionals knew the terminology.

Consumers often didn’t.

Professionals had access to data.

Consumers had to ask for it.

Professionals understood guidelines.

Consumers often didn’t even know what questions to ask.

AI is beginning to narrow that gap.

And I think that’s good.

I want my clients asking better questions.

I want them understanding what points are.

I want them comparing loan structures.

I want them asking why one option costs more than another.

I want them researching neighborhoods.

I want them understanding their closing disclosure.

I want them challenging assumptions—including mine.

An educated borrower doesn’t make my job harder. An educated borrower makes the conversation better.

The job of a great mortgage professional in an AI world shouldn’t be protecting information.

It should be helping people understand what the information means for them.

So What Should a Florida Buyer Do Right Now?

Don’t try to perfectly time three things that are nearly impossible to perfectly time:

Mortgage rates.

Home prices.

Technology.

Instead, figure out what you control.

Know your comfortable monthly payment before shopping.

Understand the entire cost of homeownership—principal, interest, taxes, homeowners insurance, mortgage insurance when applicable, HOA costs, maintenance and cash reserves.

Compare loan structures instead of simply asking, “What’s the rate?”

Look carefully at the local market where you’re actually buying instead of making a Port St. Lucie decision based on a national headline.

And don’t drain every dollar you have just to get into a house.

Most importantly, don’t let uncertainty prevent you from gathering information.

Getting pre-approved doesn’t mean you have to buy.

Touring homes doesn’t mean you have to make an offer.

Talking with a mortgage professional doesn’t obligate you to take a mortgage.

Sometimes gathering the numbers confirms that you should buy.

Sometimes the numbers tell us you should wait.

Both can be good outcomes.

The Question I Would Ask Instead

If you ask me:

“Edgar, where will mortgage rates and home prices be next September?”

I’ll tell you I don’t know.

I can show you forecasts.

I can show you data.

I can explain what markets are telling us today.

But I won’t pretend a forecast is a fact.

Instead, I would ask you:

“If we stopped trying to predict next year for a moment, what would have to be true for buying a home to make sense for you today?”

That’s a question we can work on.

And that’s where I believe mortgage professionals, real estate professionals and AI are ultimately headed.

AI will give us more information than we’ve ever had.

The best professionals will help people turn that information into better decisions.

And the buyer still gets to make the decision.

Ready to Understand Your Numbers?

If you’re considering buying in Port St. Lucie, Fort Pierce, Stuart, Royal Palm Beach, Wellington, Palm Beach Gardens, Jupiter, Tequesta, Boynton Beach, Tampa or anywhere in Florida, let’s look at your actual numbers rather than guessing about the market.

We can compare payments, down-payment options, seller credits, loan programs and the total cost of homeownership and determine what makes sense for you.

Sometimes the answer will be now.

Sometimes the answer will be not yet.

My job is to help you understand the difference.

Contact Edgar DeJesus

Edgar DeJesus
NMLS #230414
Mortgage Advisor / Branch Manager
Treasure Coast Home Loans, 

NMLS #2063586
Innovative Mortgage Services, Inc., 

NMLS #250769

Call or Text: (561) 223-9347

Email: Edgar@TreasureCoastHomeLoans.com
Website: TreasureCoastHomeLoans.com

Compliance

Loan approval is not guaranteed and is subject to lender review of information. All loan approvals are conditional and all conditions must be met by the borrower(s). A loan is only approved when the lender has issued approval in writing and is subject to all lender conditions. Any specified rates and terms are contingent upon loan approval and are subject to change without notice due to unpredictable market conditions.

Innovative Mortgage Services, Inc. is a Florida licensed lender.
Company NMLS #250769
Originator NMLS #230414
Florida Mortgage Lender License, License/Registration #: MLD178
Florida Mortgage Lender Servicer License, License/Registration #: MLD2167

Equal Housing Lender

Editorial Note: This article was prepared with AI-assisted research, organization, and grammatical review, with final content reviewed and approved by Edgar DeJesus.

Important Disclosure

This article is provided for educational and informational purposes only and should not be construed as legal, tax, financial, investment, real estate, or lending advice. Consumers should consult with appropriately licensed professionals regarding their individual circumstances.

Property tax laws, exemptions, assessments, insurance costs, homeowners association fees, and other housing-related expenses vary by property, location, municipality, county, and individual circumstances and may change over time. Consumers should independently verify current requirements and costs with the appropriate taxing authority, insurance provider, homeowners association, attorney, or other qualified professional.

Property owners remain responsible for all applicable property tax obligations. Mortgage payment estimates involving property taxes, insurance, mortgage insurance, association fees, or other housing expenses are estimates only and actual amounts may differ.

Loan approval, interest rates, annual percentage rates (APRs), loan programs, lender credits, seller credits, discount points, closing costs, down payment requirements, mortgage insurance, qualifying requirements, and other loan terms are subject to borrower qualifications, property eligibility, lender and investor guidelines, market conditions, and change without notice. Not all borrowers will qualify for all programs or terms. Past housing-market performance does not guarantee future appreciation or future results.