This week’s housing headlines reveal subtle but meaningful shifts in the world of rates. Fannie Mae released a more hopeful mortgage rate forecast, while Zillow noted softening weekly trends that could signal a gradual cooling ahead. Meanwhile, the MBA reported a slight loosening in credit availability, potentially opening more doors for borrowers. These stories highlight the slow but steady motion in the real estate finance world. Whether you’re tracking rate movement, lending conditions, or housing market forecasts, this roundup delivers the essentials.
Fannie Mae’s Housing Market Forecast: Rates to Fall, Activity to Rise
Read the Full Story → TheStreet
Fannie Mae’s latest forecast offers a more optimistic tone, predicting mortgage rates could dip below 7% by the end of 2025. The outlook is rooted in expectations of a slowing economy and a more dovish Fed as inflation cools.
The agency anticipates modest growth in home sales volume and refinancing activity if rates fall as expected. This marks a shift from the stagnation that’s defined much of 2024 and early 2025, with affordability pressures showing signs of easing.
Still, Fannie points out that inventory constraints and elevated home prices remain obstacles. Demand may rise faster than supply, keeping upward pressure on prices even as financing becomes more affordable.
Zillow: Mortgage Rates Cooling—But How Fast?
Read the Full Story → Zillow
Zillow’s weekly update shows a slight dip in mortgage rates as of early October, aligning with broader market optimism about the Fed nearing the end of its tightening cycle. However, volatility remains a factor.
Their analysts caution that while rates may have peaked, the path down won’t be smooth. Global economic uncertainty, oil prices, and job market data could all delay or reverse downward movement.
The takeaway? Rates may improve slowly, but don’t expect a dramatic drop overnight. Zillow emphasizes the importance of watching week-to-week shifts for actionable opportunities.
Mortgage Credit Availability Ticks Up in September
Read the Full Story → MBA
The Mortgage Bankers Association reports a small but notable increase in mortgage credit availability in September, marking a reversal from months of tightening standards. The uptick was led by jumbo and conventional loan segments.
While not a return to the looser credit seen pre-2022, the report suggests lenders are slowly becoming more comfortable extending credit in today’s higher-rate environment. This could help marginal buyers and those with unique income scenarios.
MBA noted that investor demand and slightly lower rates have helped widen eligibility criteria, even if modestly. This is a trend to watch as the purchase market tries to regain traction heading into 2026.
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