Mortgage originations will rise to $1.99 trillion in 2025 and $2.38 trillion in 2026, according to the latest economic outlook from Fannie Mae.
That’s up compared with last month’s forecast of $1.98 trillion and $2.33 trillion, respectively.
Fannie Mae has revised its real gross domestic product (GDP) growth outlook for 2025 to 0.7%.
For 2026, it is forecasting 2.0% GDP growth.
That’s up from 0.5% and 1.9% GDP growth in 2025 and 2026 in its previous forecast.
Fannie Mae now expects the Consumer Price Index (CPI) to rise 3.5% in 2025, unchanged from its April forecast.
Core CPI is expected to rise 3.8% in 2025 – down from 3.9% previously – and 2.6% in 2026, according to the firm.
Mortgage rates are forecast to end 2025 at 6.1% and 2026 at 5.8% – down from the previous forecast of 6.2% and 6.0%.
Fannie Mae forecasts home sales will rise to 4.92 million in 2025.