Fannie Mae: Mortgage Rates Dropping Through 2025, Boosting Home Sales Despite Recession Risk
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Fannie Mae forecasts mortgage rates to continue dropping through 2025, reaching 6.9% for 30-year mortgages, helping increase home sales to 5.3 million by 2025.
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Housing supply constraints will continue limiting inventory while supporting new construction.
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Fannie Mae expects a mild recession in 2023 with GDP declining 0.4% but a recovery in home sales by 2025.
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Monthly mortgage payments recently dropped over $150 due to declining rates, though still up 13% annually.
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The Fed may continue raising rates if inflation remains too high, adding uncertainty, though policy is now likely near properly restrictive levels.