Fannie Mae’s Economic and Strategic Research (ESR) Group now predicts mortgage rates to end 2025 and 2026 at 6.4% and 5.9%, respectively, compared to 6.5% and 6.1% in its previous forecast.

The group also revised its real gross domestic product (GDP) growth outlook for 2025 and 2026 to 1.5% and 2.1% on a Q4/Q4 basis, compared to the prior forecast of 1.1% and 2.2%, respectively.

The group’s September 2025 Economic Developments, released on Tuesday, forecasts the Consumer Price Index (CPI) to rise 3.1% Q4/Q4 in 2025, compared to its August forecast of 3.3%. The CPI outlook for 2026 is details ⇒

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