Each month, Fannie Mae’s Economic and Strategic Research Group releases an outlook detailing what they think’s ahead for the housing market and economy. The outlook covers everything from economic growth to mortgage rates and forecasts where they’ll be at the end of this year and through 2026. According to its September forecast, Fannie Mae sees improvement on the way. For starters, the group believes mortgage rates will fall slightly lower by the end of the year and drop roughly another half point by December 2026. With rates trending lower, mortgage originations should rise. Fannie Mae expects next year’s home sales total to improve significantly on this year’s. They also expect rising refinancing activity, as homeowners who purchased homes over the past few years look to lower their rate. Overall, the group doesn’t foresee any major changes but does believe conditions will ease for both homeowners and buyers over the next 15 months. (source)
