Affordability is always a top concern for home buyers and, according to a new survey from Fannie Mae’s Economic and Strategic Research Group, that isn’t likely to change any time soon. The group surveyed housing and mortgage industry experts and found that they expect affordability conditions to continue to weigh on buyers in the new year. The good news, though, is respondents also said they believe home price increases will slow in 2025. Mark Palim, Fannie Mae’s senior vice president and chief economist, agrees. “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 home buyers,” Palim said. Fannie Mae’s fourth quarter Home Price Expectations Survey shows home prices increasing 3.8 percent in 2025, after projecting a 5.2 percent growth in 2024. (source)
