Housing Market Forecasts for the Second Half of 2025

The latest 2025 forecasts show mortgage rates are projected to come down slightly and price growth will moderate.

Rates aren’t expected to fall as much as we would want them to. Expert forecasts show mortgage rates will still be between 6-6.5% by the end of 2026. So, if you’re waiting for the return of 3%, it’s not in the cards.

Each quarter, Fannie Mae asks more than 100 housing market experts to weigh in on where they project home prices are headed. And the consensus is clear. Home prices are expected to rise through at least 2029 . While those projections aren’t calling for big increases each year,  some markets may see flatter prices or slower growth, or even slight dips in the short term. Over the next 5 years, there is a slight anticipated increase.

Inventory plays a crucial role when it comes to price increase: there will be more homes available for sale. And as inventory rises, home price growth will moderate.

Want to know what this could mean for your plans? Let’s connect and talk through it together.