Fannie Mae revises down 2025, 2026 mortgage rates, home price growth outlooks

[Fannie Mae And Freddie Mac Bailout Projected To Grow]
Win McNamee/Getty Images News

Fannie Mae (OTCQB:FNMA [https://seekingalpha.com/symbol/FNMA]) revised its 2025 and 2026 mortgage rates and home price growth estimates lower, as part of the July 2025 Economic and Housing Outlook [https://seekingalpha.com/pr/20176952-mortgage-rate-and-home-price-growth-forecasts-revised-lower] report.

Mortgage rates are now estimated to end 2025 and 2026 at 6.4% and 6.0%, respectively, compared to the last month's forecast of 6.5% and 6.1%.

Meanwhile, the 2025 and 2026 annual home price growth forecasts are now revised to 2.8% and 1.1%, respectively, compared to last month's 4.1% and 2.0%. The estimates are on a Q4/Q4 basis.

Home sales are now forecast at 4.85M units in 2025 and 5.35M units in 2026. The estimates are higher than the previous [https://www.fanniemae.com/data-and-insights/forecast/economic-developments-july-2025] projections of 4.82M in 2025 and 5.25M in 2026.

Mortgage originations are now projected at $1.92T and $2.34T, respectively, for 2025 and 2026. The previous forecasts were $1.90T and $2.28T.

The financing solutions provider for residential mortgages has similarly revised its real GDP growth outlook for 2025 and 2026 to 1.3% and 2.3%, respectively, on a Q4/Q4 basis. This compares to the prior forecast of 1.4% and 2.2%.

MORE ON FANNIE MAE

* Fannie Mae: Better Price, Plus One Less Obstacle [https://seekingalpha.com/article/4801115-fannie-mae-better-price-plus-one-less-obstacle]
* Fannie Mae: Buy The Rumor, Sell The News [https://seekingalpha.com/article/4798698-fannie-mae-buy-the-rumor-sell-the-news]
* The Privatization Of Fannie Mae: Easier Said Than Done [https://seekingalpha.com/article/4790562-the-privatization-of-fannie-mae-easier-said-than-done]
* Fannie Mae housing sentiment survey declines in June [https://seekingalpha.com/news/4465649-fannie-mae-housing-sentiment-survey-declines-in-june]
* Fannie Mae guaranty book of business falls for fifth straight month in May [https://seekingalpha.com/news/4463960-fannie-mae-guaranty-book-of-business-falls-for-fifth-straight-month-in-may]