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July 25.2025

2 Minutes Read

Home Sales Forecasts Suggest a Rebound: What Should Buyers Do?

Crystal ball reflecting cityscape for home sales forecasts visualization.

The Future of Home Sales: What Experts Are Saying

As the housing market constantly fluctuates, significant forecasts highlight a potential rebound in home sales over the coming year. Economists from Fannie Mae and the Mortgage Bankers Association (MBA) share different perspectives on how mortgage rates will evolve and how that will impact housing prices.

Contrasting Forecasts

Fannie Mae's Economic and Strategic Research Group is quite optimistic, predicting a robust 10 percent surge in home sales by 2026, totaling around 5.35 million. They expect mortgage rates to decrease to 6 percent by the fourth quarter. In contrast, the MBA foresees a more modest 7 percent rebound to approximately 5.2 million sales in the same time frame.

Mortgage Rates: A Pivotal Factor

The trajectory of mortgage rates remains a crucial factor for potential homebuyers. Fannie Mae anticipates that the 30-year fixed mortgage rates could drop to 6.4 percent by year-end, while the MBA believes rates will take a more gradual path, only dipping to 6.4 percent by late 2026. Mark Zandi, Chief Economist at Moody’s, warns that the housing market could face stagnation unless meaningful reductions in mortgage rates occur soon.

The State of Inflation and Economic Outlook

Monitoring inflation will play a significant role in determining the Federal Reserve's actions regarding interest rates. Data from the consumer price index (CPI) reflects an ongoing struggle with inflation, which complicates any prediction about mortgage rate movements. The Fed's reluctance to cut short-term interest rates suggests that any projections of falling mortgage rates must be approached with caution.

What This Means for Homebuyers

For current and prospective homebuyers, understanding these forecasts is critical. A potential drop in mortgage rates could open doors for new buyers who have been waiting for a more favorable market environment. However, the divergence in forecasts highlights the uncertainty that remains in the market.

Conclusion: Making Informed Decisions

This information is crucial for anyone looking at the housing market in the coming months. By staying informed about mortgage rates and economic indicators, buyers can make better decisions regarding their investments. As we look ahead, it's clear that fluctuations in the market will continue, but being prepared can lead to effective choices whether you are buying or selling a home.

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