Pulte said in March that Fannie and Freddie “shouldn’t be in conservatorship forever” but appeared to dampen speculation that he would push immediately to pare government involvement in the enterprises.
“It’s critical to ensure any discussion about exiting conservatorship needs not only to ensure safety and soundness but how it would affect mortgage rates,” he said.
Fannie expects slower economic growth – but lower rates by year end
Fannie’s Economic and Strategic Research (ESR) Group recently cut its 2025 and 2026 growth expectations for the economy, lowering projected 2025 GDP growth to 0.5% (from 1.7%) and trimming its 2026 forecast to 1.9% from 2.1%.
The average 30-year fixed mortgage rate is expected to slide to 6.2% by the end of this year and tick further down to 6.0% at 2026’s year-end. But Fannie also expects home prices to jump by 4.1% this year, compared with its previous forecast of 3.5%, and 2.0% in 2026 – up from prior expectations of 1.7%.
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