🌟 Good News for Real Estate: More Home Sales & Lower Mortgage Rates Expected by End of 2025

Things are looking up for the housing market—and the latest forecast from Fannie Mae has real estate professionals buzzing.

If you've been waiting for signs of life in the market or wondering when sellers might finally come off the sidelines, here's your signal: Economists are predicting more home sales and lower mortgage rates by the end of 2025.

📉 Mortgage Rates Could Drop to 6.4% by Year's End

According to Fannie Mae’s May economic outlook, the average 30-year fixed-rate mortgage is now expected to end 2025 at around 6.4%—a notable drop from earlier predictions of 6.8%. This marks the lowest mortgage rate forecastthey’ve released this year.

Why does that matter? Because lower rates spark movement—and after years of uncertainty and hesitation, many homeowners may finally feel ready to list.

🏡 More Homes Expected to Hit the Market

Fannie Mae now forecasts 4.92 million home sales this year—a 3.6% increase over 2024. Even more exciting: 4.24 million of those are expected to be existing home sales, which would be a 4.4% jump compared to last year.

This is a big deal for buyers and agents alike. For a long time, homeowners have been reluctant to give up their low-rate mortgages from previous years, creating a bottleneck in inventory. But if rates continue to ease, those same sellers may finally decide it’s time to make a move.

💡 What This Means for You

Whether you're an agent, investor, or buyer, now’s the time to gear up:

• Agents: Get ready for more listing opportunities as seller confidence grows.

• Buyers: Keep an eye on rate drops—they could create windows of opportunity.

• Sellers: If you’ve been waiting for the right moment to list, this may be your year.

Plus, this market shift means we may see less rate volatility, offering a smoother ride for everyone involved in real estate transactions.

📬 Stay Ahead of the Market

The rest of 2025 could bring the momentum we’ve all been waiting for. Make sure you're staying informed and ready to act—because when inventory loosens and rates drop, competition (and opportunity) heats up fast.

Ready to talk strategy or explore what this forecast means for your market? Let’s connect. 📞💬