Fannie projects that the average interest rate on a 30-year fixed-rate mortgage will hold at 6.1% in the second quarter before declining to 6.0% in the third quarter and then remain at that level through the end of 2027.
The portfolios include both MBS and mortgages, with MBS holdings at Fannie Mae and Freddie Mac up nearly 60% on a quarterly basis in the fourth quarter of 2025.
“Builders reduced their expectations for future sales as buyers report affordability challenges, which is contributing to declining consumer confidence for the overall economy,” said Buddy Hughes, chair of the National Association of Home Builders.