Fannie Mae's Economic and Strategic Research (ESR) Group announced on March 28, 2025, a revised outlook for mortgage rates. Rates are now expected to conclude 2025 and 2026 at 6.3 percent and 6.2 percent, respectively.
These figures represent downward revisions of three-tenths of a percentage point for each year. The lower mortgage rate outlook has led to a small upward revision in the ESR Group's existing home sales forecast for 2025.
While expectations for total home sales remain subdued, the anticipated decline in mortgage rates could stimulate housing market activity. This development is generally positive for Fannie Mae, potentially boosting mortgage demand and origination volumes.
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