Core Insights - Fannie Mae projects a recovery in the US housing market by 2026, driven by lower mortgage rates and increased home sales activity [1][4] - The forecast indicates mortgage rates could decline to 5.9% by the end of 2026, the lowest since 2022 [2][4] Market Projections - Home sales are expected to reach 4.72 million in 2025 and 5.16 million in 2026, marking an increase of nearly 500,000 [2][3] - Existing home sales may rise by 9.6% year-over-year in 2026, while new home sales could increase by 6.9% [3] - Mortgage originations are projected to total $1.85 trillion in 2025 and $2.32 trillion in 2026, reflecting a $470 billion increase in borrowing activity [3][4] Current Market Conditions - The average 30-year fixed mortgage rate recently decreased to approximately 6.26%, down from a peak of around 7.7% in 2023 [4] - The housing market has been largely stagnant due to high mortgage rates, which have restricted both buyers and sellers [3]
The housing market could see 500,000 more sales next year as mortgage rates fall below a key level
Yahoo Finance·2025-09-24 22:49