Fannie Mae Survey: Home Price Growth Deceleration Still Expected in 2025, 2026

Fannie Mae, in partnership with Pulsenomics, released its Home Price Expectations Survey. The respondents’ average outlook pointed to 5.2% growth in national home prices in 2024.

It also predicted that home price growth will decelerate to 3.8% in 2025 and 3.6% in 2026.

That’s an upward revision of last quarter’s expectations of 4.7% for year-end 2024, 3.1% for 2025 and 3.3% for 2026.

The survey also explored respondents’ general housing outlook for 2025–on average, they expect existing home sales to remain sluggish for another year and new home sales to trend slightly upward.

They also anticipate mortgage rates to remain elevated but modestly decline over the course of the year to 6.3%.

“While home price growth is expected to ease next year, HPES panelists’ big-picture view for 2025 appears to be little changed compared to 2024, with most seeing another year of elevated mortgage rates and weak home sales,” said Mark Palim, Fannie Mae Senior Vice President and Chief Economist. “We share our panelists’ view that home price growth is likely to decelerate next year, as the mix of continued elevated mortgage rates and the run-up in home prices of the past four years will likely continue to strain affordability and remain an impediment to many would-be homebuyers.”