Will Mortgage Rates Go Down in 2027? What Baton Rouge Buyers Should Know
Will mortgage rates go down in 2027?
Probably not by much. The Mortgage Bankers Association expects 30-year fixed rates to stay above 7% through the end of 2027. If you've been waiting for a big rate drop before you buy, it may be a long wait.
Part of our guide to the Baton Rouge housing market.
Where rates are right now
According to Freddie Mac, the average 30-year fixed rate this week is 7.40%, unchanged from last week. The 15-year fixed averages 6.71%. A year ago, the 30-year rate was 6.27%, so borrowing costs more than it did last fall.
What's happening in the Baton Rouge market
Higher rates have slowed things down locally. The Greater Baton Rouge Association of REALTORS® September 2026 numbers show:
79 days on market on average, up from 61 a year ago. Homes are taking 18 days longer to sell.
3,524 homes for sale, with about 4.6 months of supply.
Homes are still selling for about 98% of list price.
What this means if you're buying
When homes sit longer, buyers usually have more leverage. You may be able to:
Ask the seller to help with closing costs.
Negotiate a rate buydown, which lowers your monthly payment.
Take more time to compare homes instead of rushing.
Ask for repairs after the inspection.
If you buy now and rates come down later, you may be able to refinance. If you wait, prices and competition could change in the meantime.
What this means if you're selling
Homes still sell close to asking, but buyers are pickier and have more choices. Pricing it right from day one matters more than it did a year ago. Overpriced homes tend to sit, and longer days on market can mean bigger price cuts later.
Questions to ask your lender
What would my payment be at today's rate compared with half a point lower?
Can a seller-paid buydown lower my rate, and what would it cost?
What loan programs do I qualify for, such as FHA, VA, USDA or conventional?
If rates drop later, what would refinancing cost me?
How long can I lock my rate?
The bottom line
Rates aren't expected to fall much through 2027, but the Baton Rouge market is giving buyers more room to negotiate than they've had in a while. The right move depends on your budget, timeline and plans, not on guessing where rates go next.
Want the full local numbers? Comment or message me the word REPORT and I'll send you the latest Baton Rouge market report.
Brian Mackey, REALTOR®, Pivot Realty
Sources: Mortgage Bankers Association forecast; Freddie Mac Primary Mortgage Market Survey (week of Oct. 15, 2026); Greater Baton Rouge Association of REALTORS®, September 2026.
Photo by Jakub Żerdzicki on Unsplash
