Fannie Mae's Economic and Strategic Research (ESR) Group released its March 2025 commentary, revising its mortgage rate outlook downward. The ESR Group now expects mortgage rates to end 2025 and 2026 at 6.3% and 6.2% respectively.
These figures represent downward revisions of three-tenths for each year, indicating a more favorable interest rate environment than previously anticipated. The lower mortgage rate outlook resulted in a small upward revision to the ESR Group's existing home sales outlook in 2025.
While total home sales expectations remain subdued, a forecast for lower mortgage rates is generally positive for the housing market, potentially stimulating demand and increasing Fannie Mae's acquisition volumes. Real gross domestic product (GDP) is forecast unchanged at 2.2% Q4/Q4 for 2025.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.