Forecast for Housing Activity Revised Slightly in April Outlook
Rhea-AI Summary
Fannie Mae has released its April 2025 Economic and Housing Outlook, revising key housing market projections. The forecast indicates single-family home sales will reach 4.86 million units in 2025, while new single-family construction is expected to total 964,000 units.
Key projections include:
- Economic Growth: 0.5% for 2025 and 1.9% for 2026
- Mortgage Rates: Expected to end at 6.2% in 2025 and 6.0% in 2026
- Home Prices: Projected to rise 4.1% in 2025 and 2.0% in 2026, according to the Fannie Mae Home Price Index
These forecasts reflect adjustments based on recent market data and updated macroeconomic expectations. The outlook provides valuable insights for housing market stakeholders, though Fannie Mae notes these projections are subject to change based on various market factors and assumptions.
Positive
- Home prices projected to rise 4.1% in 2025 and 2.0% in 2026
- Single-family home sales forecast at 4.86 million units in 2025
- New single-family construction expected to reach 964,000 units in 2025
- Mortgage rates expected to decrease from current levels, reaching 6.2% by end of 2025 and 6.0% in 2026
Negative
- Economic growth forecast remains low at 0.5% for 2025
- Home price growth expected to slow significantly from 4.1% in 2025 to 2.0% in 2026
News Market Reaction 1 Alert
On the day this news was published, FNMA gained 1.59%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Visit the Economic and Strategic Research site at fanniemae.com to read the full April 2025 Economic and Housing Outlook, including the Economic Developments Commentary, Economic Forecast, and Housing Forecast. To receive email updates with other housing market research from Fannie Mae's Economic and Strategic Research Group, please click here.
Opinions, analyses, estimates, forecasts, beliefs, and other views of Fannie Mae's Economic and Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, beliefs, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, beliefs, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.
About the ESR Group
Fannie Mae's Economic and Strategic Research Group, led by Chief Economist Mark Palim, studies current data, analyzes historical and emerging trends, and conducts surveys of consumer and mortgage lender groups to provide forecasts and analyses on the economy, housing, and mortgage markets.
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SOURCE Fannie Mae
FAQ
What is Fannie Mae's (FNMA) housing forecast for single-family home sales in 2025?
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