Fannie Mae cut its 2026 home-sales forecast to 7.3%, ↓ from earlier, stronger projections.
Mortgage rates are expected to average 6.2% early in 2026 and drop to ~5.9% year-end.
Fed rate-cut uncertainty and mixed economic signals add volatility to mortgage-rate expectations.
Affordability remains strained, with experts saying prices or rates must drop sharply for relief.
Home price growth and housing construction are projected to slow further in 2026.
