The Berkshire Hathaway U.S. Real Estate Market Forecast indicates ongoing uncertainty in the housing market due to global events and financial market changes. Mortgage rates have seen fluctuations, with a decline in the second quarter of 2025 followed by an increase in mid-May. The Federal Reserve's decision to keep interest rates stable has contributed to a recent drop in mortgage rates. Various forecasts predict that mortgage rates could remain around the mid-6% range through 2025, potentially dipping below 6% by late 2026. Increased home inventory and declining new home sales signal shifting market conditions.
Mortgage rates have fluctuated recently, with a noted decrease in Q2 2025 followed by a mid-May increase. Significant relief in rates may not be seen until 2026.
The Federal Reserve's decision to maintain interest rates between 4.25% to 4.5% has led to a fall in mortgage rates. Cautious optimism for further rate easing in 2026 is indicated.
Projections from Fannie Mae and other associations suggest average mortgage rates will hover around the mid-6% range through 2025, with potential dips below 6% expected by late 2026.
Home inventory levels have increased, with new home sales declining by 13.7% in May. This rising inventory represents a 9.8-month supply, leading builders to reduce prices.
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