Fannie Mae's Forecast for Mortgage Rates in 2025 and 2026

September 13, 2025 - 23:43

Fannie Mae's recent projections indicate a persistent trend of elevated mortgage rates extending into 2025 and 2026. The forecast suggests that homebuyers should prepare for rates hovering around 6.5%, a scenario that could significantly influence purchasing decisions in the housing market.

This "higher for longer" outlook reflects a cautious economic environment where inflationary pressures and Federal Reserve policies continue to play a critical role. Potential homebuyers may need to adjust their expectations and financial strategies accordingly. With mortgage rates expected to remain elevated, affordability could become a pressing concern for many individuals looking to enter the housing market.

As potential buyers navigate these conditions, it will be essential to consider budgeting carefully and exploring various financing options. Understanding the implications of these predicted rates could help buyers make informed decisions about their home purchases in the coming years. The landscape of homebuying may be challenging, but awareness and preparation can pave the way for successful transactions.