Fannie Mae now expects firmer economic momentum, raising GDP growth forecasts to 1.9% in 2025 and 2.3% in 2026, supported by easing inflation.
Mortgage rates are projected to gradually decline, ending 2025 at ~6.3% and falling to ~5.9% in 2026, improving affordability over time.
Home sales are forecast to rise to 4.74M in 2025 and 5.16M in 2026, signalling slow but steady demand recovery as rates ease.
Home price growth is expected to cool to 2.5% in 2025 and 1.3% in 2026, while mortgage originations climb to $1.88T and $2.35T, reflecting improved housing market liquidity.