Fannie Mae has released its Economic and Housing Outlook for October 2025, providing key projections for the economy and the housing market. If you are looking to buy a home in the near future, this forecast offers a glimpse at what experts are anticipating for mortgage rates, home prices, and more.
Here are the key takeaways from the report:
Mortgage Rate Projections
- The forecast for 30-year fixed mortgage rates is 6.3 percent by the end of 2025.
- Looking further ahead, rates are projected to decrease to 5.9 percent by the end of 2026.
Home Price Outlook
- Home price growth is expected to be 2.5 percent in 2025 (on a Q4/Q4 basis).
- For 2026, the forecast anticipates home price growth of 1.3 percent (on a Q4/Q4 basis).
Home Sales Forecast
- The outlook for total home sales in 2025 has been revised to 4.74 million.
- In 2026, total home sales are projected to increase to 5.16 million.
The Broader Economic Picture
- Economic Growth (GDP): The outlook for real Gross Domestic Product (GDP) growth is 1.9 percent for 2025 and 2.3 percent for 2026 (Q4/Q4 basis).
- Inflation (CPI): The Consumer Price Index (CPI), a common measure of inflation, is forecast to be 2.9 percent (Q4/Q4) in 2025 and 2.7 percent in 2026.
Ready to Navigate the Texas Housing Market?
Forecasts are helpful, but your personal financial situation is what matters most. If you’re planning to buy a home in Magnolia or anywhere in Texas, let’s talk. I can help you understand these trends and find the right mortgage for your specific goals.
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Sal Trapani Mortgage Banker | Owner MJ Mortgage LLC NMLS 1055510 / NMLS 2381195
Cell: 281-608-2846 Email: sal@mjmortgagellc.com Website: www.mjmortgagellc.com Address: 33130 Magnolia Cir, Magnolia, TX 77354
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