Fannie Mae has adjusted its forecasts for 2025 and 2026 due to the impacts of President Trump's trade war, indicating a reduction in economic growth expectations from 2.2% to 1.7%. Despite this, the outlook for existing-home sales and single-family mortgage origination has improved slightly. The GSE anticipates inflation to rise to 3.2%, affecting mortgage rates expected to be 6.3% and 6.2% in 2025 and 2026. Fannie's projections contrast with those from the National Association of Realtors, illustrating differing perspectives on the housing market amidst growing uncertainty.
Fannie Mae adjusted its economic forecasts, lowering growth expectations while anticipating increased home sales and slightly higher mortgage originations amidst market uncertainty.
The latest Fannie Mae forecast indicates a notable increase in market volatility, with projections for economic growth revised down to 1.7% for 2025 compared to 2.2%.
Despite a downward revision in overall economic outlook due to trade tensions, Fannie Mae expects existing-home sales to grow marginally, in contrast to NAR's predictions.
Fannie Mae holds that inflation will increase to 3.2%, influencing mortgage rates, which are expected to slightly decrease in the next two years.
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