The Q4 2024 Fannie Mae Home Price Expectations Survey (HPES) revealed an upward revision in the forecast for national home price growth. A panel of over 100 housing experts now projects a 5.2% increase in 2024, up from the previous quarter's expectation of 4.7%.
Despite the upward revision for 2024, the panel still expects home price growth to decelerate in subsequent years. Forecasts are set at 3.8% for 2025 and 3.6% for 2026, which are also upward revisions from prior estimates of 3.1% and 2.9% respectively.
This more optimistic outlook on home price appreciation is significant for Fannie Mae as it supports the collateral value of its guaranteed loans and can mitigate credit risk. The revised forecasts suggest a more resilient housing market than previously anticipated.
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