India, Oct. 26 -- US mortgage rates may remain above 7% through 2027. Major housing groups expect mortgage rates to stay high for an extended period, making home loans expensive for Americans who want to buy houses. Fannie Mae forecasts that mortgage rates could average 7.5% in 2027, while the Mortgage Bankers Association expects rates to remain above 7% that year.

The 10-year US Treasury yield plays a major role in mortgage rates. Mortgage rates generally move in line with the yield on 10-year Treasury bonds. High inflation is one of the main reasons borrowing costs could stay elevated. When inflation remains high, investors usually demand higher returns on long-term bonds, according to CNBC.

US inflation has remained above the Federal...