Fannie Mae makes crucial update to 2025 mortgage rate forecast
Homebuyers may see housing market relief sooner than anticipated.
When the Fed began cutting interest rates in September, many economists and housing experts expected mortgage rates to drop in tandem. However, months of political and economic uncertainty and volatile financial markets have put upward pressure on mortgage rates.
Initial projections anticipated mortgage rates would fall below 6% by the end of 2025. However, Fannie Mae revised its forecast several times to factor in Fed interest rate adjustments, inflation, housing sentiment, and general market uncertainty.
