Fannie Mae (OTCQB:FNMA) in its latest housing outlook report upwardly revised the 2025 U.S. single-family home sales estimate amid expectations of lower mortgage rates and higher GDP growth.
The 2025 single-family home sales are now expected to come at 4.92M units, up from the previous forecast of 4.86M units.
The May 2025 Economic and Housing Outlook said that mortgage originations are now projected to rise to $1.99T in 2025 and $2.38T in 2026. The previous outlook stood at $1.98T in 2025 and $2.33T in 2026.
The report comes from Fannie Mae's Economic and Strategic Research Group.
"Revisions to the home sales forecast were driven in part by the ESR Group's lower expectations for mortgage rates," the Federal National Mortgage Association said in a May 21 statement.
Mortgage rates are forecasted to end 2025 at 6.1% (revised downward from 6.2%) and 2026 at 5.8% (revised downward from 6.0%).
The changes come as Fannie Mae makes upward revisions to its real gross domestic product growth outlook.
The GDP is now projected to increase by 0.7% in 2025 and 2.0% in 2026 (on a Q4/Q4 basis), compared to the prior forecast of 0.5% and 1.9%, respectively.
For the Consumer Price Index, the growth is still expected at 3.5% for 2025 (on a Q4/Q4 basis). However, the 2025 core CPI outlook is revised downward to 3.8% rise from 3.9% growth.
For 2026, the core CPI growth is still expected at 2.6%
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