Housing experts project home price growth will moderate over the next two years, according to the Q1 2025 Fannie Mae Home Price Expectations Survey.
A panel of more than 100 experts forecast price growth of 3.4% in 2025 and 3.3% in 2026. The projections represent revisions from the fourth quarter survey when experts projected growth of 3.8% in 2025 and 3.6% in 2026. Respondent expectations for price growth in 2025 ranged from -4.5% to 11.0% according to the latest survey.
For the five-year period between 2025 and 2029, panelists project an average annual growth rate of 3.7%.
The Home Price Expectations Survey is produced in partnership with Pulsenomics, polling experts across the housing and mortgage industry and academia for forecasts of national home price percentage changes in the next five calendar years. The first quarter survey generated 108 responses.
At the same time, Fannie Mae’s Economic and Strategic Research Group is projecting that mortgage rates will end 2025 and 2026 at 6.3% and 6.2%, respectively. In part due to continued elevated rates, the group’s expectations for total home sales remains subdued for 2025.
“We think mortgage rates will move even lower within the next quarter and ultimately close the year at approximately 6.3%, which could be low enough to generate some extra sales from any would-be buyers still waiting on the sidelines,” said Fannie Mae senior vice president and chief economist Mark Palim.
