What’s Ahead for Buyers in 2025-2026

If you’ve been waiting for a better time to buy, the latest mortgage rate outlook from Fannie Mae might be the news you’ve been hoping for. According to their updated July 2025 Economic and Housing Outlook, mortgage rates are now expected to ease a bit more than originally projected — and that could make a real difference for buyers.

What’s Changing?

  • Mortgage Rates:
    Fannie Mae now expects mortgage rates to settle at 6.4% by the end of 2025 and 6.0% by the end of 2026. That’s slightly down from their previous forecast, which had them ending at 6.5% and 6.1%.

  • Home Price Growth:
    Home prices are still rising, but at a slower pace. The new forecast shows a 2.8% increase in 2025 and only 1.1% in 2026. That’s a drop from last month’s projections of 4.1% and 2.0%, suggesting the market may cool a bit, giving buyers more leverage.

  • Home Sales on the Rise:
    With more favorable conditions, home sales are expected to grow to 4.85 million units in 2025 and 5.35 million in 2026 — both slightly higher than earlier estimates.

  • More Borrowing Activity:
    Total mortgage origination’s are now projected at $1.92 trillion for 2025 and $2.34 trillion for 2026, reflecting increased confidence and affordability for future buyers.

  • Slight Dip in Economic Growth:
    Fannie Mae also adjusted the U.S. economic growth forecast to 1.3% in 2025 and 2.3% in 2026, just a slight downgrade from the prior numbers.

What Does This Mean for You?

Lower mortgage rates combined with slower home price growth could create a window of opportunity for many buyers. If you’ve been sitting on the sidelines waiting for the right time, the current mortgage rate outlook suggests that 2025 and 2026 could offer improved affordability and more housing choices.

📞 Ready to talk about your buying plans? Let’s connect today to go over your options and find out how this outlook fits into your homeownership goals.
Contact RMF Realty Team to schedule a Free consultation.

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