Fannie Mae Updates Its Economic and Housing Outlook for May

On Wednesday, the Fannie Mae Economic and Strategic Research (ESR) Group released its Economic and Housing Outlook report for May.

According to the ESR Group, total single-family home sales are expected to close 2025 at 4.92 million units, with existing-home sales accounting for 4.24 million of those units.

The ESR Group said the revisions to the home sales forecast were driven in part by the ESR Group’s lower expectations for mortgage rates, which it now forecasts to end 2025 and 2026 at 6.1% and 5.8%, respectively. The latest outlook also projects real gross domestic product growing at 0.7% in 2025 and 2.0% in 2026 on a Q4/Q4 basis.