Fannie Mae forecasters are predicting mortgage rates will fall below 6% by the end of next year.

By Fannie Mae
PR Newswire
November 21, 2025
Category: Finance & Economics
Region: United States

WASHINGTON — Fannie Mae’s monthly economic and housing outlook, published by the Economic and Strategic Research (ESR) Group, is now available. The forecast files, which contain the ESR Group’s expectations for mortgage rates, single-family and multifamily originations, and real GDP growth, among other data points step from their November Economic Forecast and their November Housing Forecast. Highlights include: 

  • Mortgage rates are expected to end 2025 at 6.6% and 2026 at 6.0%.
  • Total home sales projected at 4.73 million units in 2025 and 5.08 million in 2026.
  • The ESR expects home prices to rise 2.5% in 2025 and 1.3% in 2026.
  • Single-family mortgage originations are forecast at $1.88 trillion in 2025 and $2.34 trillion in 2026.

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