Home buyers and sellers shouldn’t expect to see too much change in the months ahead, according to a new forecast from Fannie Mae’s Economic and Strategic Research Group. The group’s monthly forecast – which covers their thoughts on where the housing market and economy are headed – says there will be little change in the new year. In fact, the group says, though mortgage rates will decline and prices will decelerate, both will only fall modestly. They also expect sales of previously owned homes to remain relatively slow, while the new home market will be a “bright spot.” In other words, things may look very much the same in 2025 as they did in 2024. Mark Palim, Fannie Mae’s senior vice president and chief economist, says rate volatility may provide buyers with opportunities. “Heightened mortgage rate volatility may present opportunities for would-be home buyers to take advantage of temporary lows, and we may see stretches where housing activity is boosted by lower rates – but, on average, we expect mortgage rates to remain elevated and a hindrance to activity,” Palim said.”
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