Fannie Mae's Economic and Strategic Research (ESR) Group released its June 2025 Economic and Housing Outlook, revising its forecast for existing single-family home sales. The ESR Group now projects 4.14 million units for 2025, a slight decrease from last month's forecast of 4.24 million units.
This revision was driven in part by the ESR Group's higher expectations for mortgage rates, which are now predicted to end 2025 and 2026 at 6.5% and 6.1% respectively. These higher rate expectations contribute to a more cautious outlook for housing demand.
A downward revision in existing home sales forecasts, coupled with higher mortgage rate expectations, indicates a more challenging environment for housing market activity. This could impact Fannie Mae's acquisition volumes and overall business performance, requiring adaptive strategies.
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