Fannie Mae's Economic and Strategic Research (ESR) Group released its November 2024 commentary, revising its existing home sales outlook for 2025. The group now expects only a 4% rise in existing home sales next year.
This represents a significant downward revision from the previously forecast 11% increase for 2025. The change was attributed to a substantial upward movement in mortgage rates and other long-duration bonds in recent weeks.
A lower forecast for existing home sales indicates continued headwinds for the housing market, which could constrain Fannie Mae's acquisition volumes and overall business activity. This outlook suggests a more challenging operating environment for the company in the near term.
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