Fannie Mae Expert Panel Sees Home Prices Continuing to Rise but at a Slower Pace in 2024 and 2025

On Monday (12-11-23), Fannie Mae released its Q4 Home Price Expectations Survey (HPES), produced in partnership with Pulsenomics, LLC. The HPSE polls over 100 experts across the housing and mortgage industry and academia for forecasts of national home price percentage changes in each of the coming five calendar years, as measured by the Fannie Mae Home Price Index (FNM-HPI).

The panel anticipates that, on average, home price growth at the end of 2023 will be 5.9%. That will be followed by slower growth of approximately 2.4% in 2024 and a modest rebound to 2.7% in 2025.

With mortgage rates having experienced significant volatility of late, the Q4 HPES also asked panelists about their long-run interest rate expectations, as well as their opinions on potential drivers of mortgage rates in the future. The average respondent expects the 30-year fixed rate mortgage rate to eventually settle to an average of approximately 5.7%.


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