WASHINGTON—Mortgage rates are forecast to end 2025 and 2026 at 6.4% and 5.9%, respectively, according to the September 2025 Economic and Housing Outlook from the Fannie Mae Economic and Strategic Research (ESR) Group.
The ESR Group projects new and existing home sales to total 4.72 million in 2025 and 5.16 million in 2026.
Single-family mortgage originations activity is expected to total $1.85 trillion in 2025 and $2.32 trillion in 2026, with the refinance share rising from 26% in 2025 to 35% in 2026 on the lower mortgage rate outlook.