India, Sept. 10 -- Mortgage rates may fall over the next five years, but they could also go back to 7%. A main forecast expects the average 30-year fixed mortgage rate to be around 6.05% in 2027.

Rates could slowly fall after that. But there is also a risk that rates could rise to around 7% by 2027. This could happen if inflation remains high and the US government keeps borrowing more money, pushing bond yields higher.

The 10-year US Treasury yield is an important sign for mortgage rates. Mortgage rates usually move in the same direction as the 10-year Treasury yield. However, mortgage rates are normally higher because lenders add an extra amount to cover their risks, according to Yahoo Finance.

Economists expect the 10-year Treasury y...