Fannie Mae Projects Modest Decline in Home Sales for 2025

Author: Dylan Bailey Updated: 06-23-2025 03:10 PM

Fannie Mae Adjusts Home Sales Outlook for 2025

Recent forecasts indicate that existing single-family home sales are likely to hit around 4.14 million units for 2025, a slight decrease from the previous estimate of 4.24 million. This updated prediction comes from Fannie Mae's Economic and Strategic Research (ESR) Group, which is known for its insightful analysis into economic trends.

Key Drivers Behind the Revised Forecast

The adjustment in the home sales forecast is significantly influenced by the ESR Group's expectations regarding mortgage rates. Current projections suggest that mortgage rates might end 2025 at approximately 6.5% and could stabilize around 6.1% by 2026. These anticipated rates reflect a broader economic trend and represent a slight upward movement, which typically impacts homebuyer sentiment and purchasing behaviors.

Economic Growth Predictions

Alongside the housing market insights, the ESR Group also forecasts real gross domestic product (GDP) growth of 1.4% for 2025, escalating to 2.2% by 2026. This measure indicates the overall health of the economy, which is crucial as it parallels developments in the real estate sector. A growing economy can influence consumer confidence and spending, which in turn, impacts housing demand.

About Fannie Mae's ESR Team

The Economic and Strategic Research Group at Fannie Mae is spearheaded by Chief Economist Mark Palim. This dedicated team engages in rigorous analysis of current data, trends, and consumer behavior within the mortgage and housing markets. Their comprehensive surveys and research efforts aim to provide stakeholders with informed forecasts and analyses regarding the state of the economy and housing sectors.

Staying Updated with Fannie Mae

For those interested in following further developments in the housing market or seeking detailed economic insights, Fannie Mae offers several resources through their Economic and Strategic Research division. This expert analysis is not only accessible but essential for understanding market dynamics. Interested parties can obtain updates directly from Fannie Mae's website, ensuring they stay informed about upcoming reports and market shifts.

Frequently Asked Questions

What is the projected sales figure for existing homes in 2025?

The forecast for existing single-family home sales is approximately 4.14 million units for 2025.

Why has the home sales forecast been revised?

The revision is primarily due to increased expectations for mortgage rates, influencing buyer behavior.

What are the anticipated mortgage rates by 2026?

Mortgage rates are expected to reach about 6.1% by the end of 2026.

What GDP growth is Fannie Mae predicting for 2025?

Fannie Mae expects a GDP growth of 1.4% for the year 2025.

How can I access more information from Fannie Mae?

Updates and analyses can be found on Fannie Mae's official website, where their Economic and Strategic Research insights are published regularly.

About The Author

My name is Dylan Bailey, and I am 28 years old. I am an author and an expert on the stock market who specializes in publicly traded companies. Early fascination with the stock market inspired me to seek a finance degree and then delve deeply into the world of stocks. I have developed over the years my abilities to spot investment prospects, assess business performance, and analyze market trends.

My books and articles try to help regular investors understand the nuances of the stock market. Anyone can, in my opinion, make wise investment choices and succeed financially if they have the correct information and resources. In my writing, I combine in-depth research with practical insights and advice that can be put into action. This is done with the intention of assisting readers in navigating the constantly shifting landscape of publicly traded companies.

In addition to writing, I also host webinars and workshops, where I give presentations and share my knowledge with a wider audience. I also write for top financial journals and show up as a guest analyst on financial news shows. I like to travel, spend time with my family, and keep active by playing different sports when I'm not buried in market research.

My goal is to enable people to choose wisely and consciously in their investments, so taking charge of their financial futures. By my work, I hope to create a community of informed and self-assured investors prepared to take advantage of the chances presented by the stock market.

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