Mortgage rates are expected to end 2025 at 6.4% and 2026 at 6% — downward revisions compared with last month’s forecast figures of 6.5% and 6.1%. That’s according to the July 2025 Economic and Housing Outlook released Thursday by Fannie Mae‘s Economic and Strategic Research (ESR) Group.
The ESR Group also updated its home-price growth forecast and now projects annual price appreciation of 2.8% in 2025 and 1.1% in 2026. These are also downward revisions compared with the previously projected figures of 4.1% and 2%.