The article discusses the latest economic forecasts regarding inflation and mortgage rates. Inflation expectations, as measured by the Consumer Price Index (CPI), are stable, with a projected rise of 3.5% in 2025. Core CPI is slightly adjusted to 3.8% for the same year. Meanwhile, mortgage rates are expected to decrease, with 30-year fixed-rate mortgages projected at 6.1% by the end of 2025. Additionally, home sales are expected to rise to 4.92 million, and mortgage origination volumes are set to increase to $1.99 trillion in 2025.
Despite the improved growth outlook, inflation expectations remain largely unchanged. The Consumer Price Index (CPI) is projected to rise 3.5% in 2025.
Fannie Mae lowered its forecast for mortgage rates, projecting a 30-year fixed-rate mortgage rate to end 2025 at 6.1%, down from an earlier estimate.
The outlook for home sales has improved slightly, with total existing- and new-home sales expected to reach 4.92 million in 2025.
Mortgage origination volume is also set to rise modestly, with Fannie Mae forecasting $1.99 trillion in 2025 and $2.38 trillion in 2026.
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