Fannie & Freddie Just Dropped a Housing Prediction
Ken McElroy Show
Ken McElroy
4.8 • 692 Ratings
🗓️ 10 June 2025
⏱️ 23 minutes
🧾️ Download transcript
Summary
Fannie Mae now predicts mortgage rates could fall to 5.8% by 2026, thanks to falling Treasury yields, covert Fed bond purchases, and cooling inflation. This video unpacks the hidden economic levers quietly pushing rates down—and what that means for buyers, sellers, and investors.
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ABOUT KEN: Ken is the author of the bestselling books The ABC’s of Real Estate Investing, The Advanced Guide to Real Estate Investing, and The ABC’s of Property Management. With over two decades of experience in real estate investing, Ken McElroy is passionate about sharing the good life by helping real estate investors grow and prosper. This podcast is a place for Ken to discuss numerous topics connected to real estate investing, including finance, budgeting, the entrepreneur mindset, and creating passive income. Ken offers a wealth of personal experiences, practical advice, success stories, and even some informative setbacks, all presented here to educate and inspire. Whether you’re a new or seasoned investor, the information and resources on this channel will set you on a path where you and your investments can thrive.
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Transcript
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| 0:00.0 | After two years of pain for homebuyers, Fannie Mae is now predicting rates could go to 5.8% by 2026. |
| 0:12.4 | Yeah, I think this is good news. |
| 0:14.4 | What we have happening now is if you go back just a few months ago, it wasn't good, right? |
| 0:20.4 | And so they're basically saying that's |
| 0:22.5 | going to be under 6% by the end of next year. So a year and a half for a lot of you, that seems like a lot. |
| 0:28.9 | But this is actually quite normal. And I don't know, what do you think? Fed's going to be meeting next week, |
| 0:35.6 | 17th, 18th. Well, there's reasons this is important. |
| 0:38.6 | So one, you know, a drop in rates is going to pull more buyers off the sidelines. We keep telling |
| 0:43.6 | everyone, this is a great time to buy. It's a buyer's market because you can negotiate right now. |
| 0:48.5 | And, you know, about a month and a half ago, we had a random weekend where rates, for whatever |
| 0:53.2 | reason, dip to 6.25 and there's a lot of home purchases. |
| 0:57.4 | You know, people came out and drove. So as rates start to lower, it's a mental thing, right? |
| 1:02.1 | So people know when rates go down, historically, prices go up because everyone's solving to their |
| 1:08.8 | monthly payment. Well, if things start to go down, then buyers are going to come out because they're not going to want to miss out before prices start to rise. |
| 1:18.4 | Yeah, and I think if you go look at their forecast, they just came out with a forecast. |
| 1:22.1 | They've got what's called the National Housing Survey. |
| 1:24.3 | Just go on their website. |
| 1:25.3 | It just came out this morning, actually. |
| 1:27.7 | It's the Home Purchase Sent sentiment index, and it's ticking up. |
| 1:32.3 | This is good because just in 2023, it was not good. |
| 1:36.7 | It was in the 50s. |
| 1:38.1 | It was like 58. |
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