WASHINGTON – With the recent Fed rate cut drawing more attention to the issue, mortgage rates are now forecast to end 2025 and 2026 at 6.4% and 5.9%, respectively, according to the September 2025 Economic and Housing Outlook from the Fannie Mae Economic and Strategic Research (ESR) Group.
The ESR Group is projecting:
- New and existing home sales to total 4.72 million in 2025 and 5.16 million in 2026.
- Single-family mortgage originations activity is expected to total $1.85 trillion in 2025 and $2.32 trillion in 2026, with the refinance share rising from 26% in 2025 to 35% in 2026 on the lower mortgage rate outlook.
Additional information is available on Fannie Mae’s Data and Insights page.
