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Fannie Mae predicts shift in mortgage rates, housing market

The average 30-year fixed mortgage rate reached 6.55%, remaining above 6.5% for nine weeks, impacting home sales, which dropped 2.2%. Fannie Mae forecasts rates to stay around 6.4% through 2026, dropping slightly to 6.3% in early 2027, with uncertainty due to Middle East conflicts. Home sales are expected to decline slightly in 2026 but rise in 2027, with slower sales linked to high rates and low inventory.

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Karen

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