Economists forecast lower mortgage rates, slower home price growth
Economists at Fannie Mae have revised their housing market expectations for the end of 2025 and 2026.
And it would be welcome news for frustrated homebuyers.
The mortgage giant — responsible for buying loans from banks and bundling them as securities — said Thursday that it now expects mortgage rates to end this year at 6.4% and that by the end of 2026, they'll be at 6%. It's a downward shift from last month's forecast.
They also adjusted their prognosis for home-price growth downward.
Now, they anticipate annual price growth to settle at 2.8% this year and 1.1% in 2026.
Demand for architects weakens
The American Institute of Architects said firms reported a decrease in billings in June. In other words, architects completed fewer projects.
The AIA/Deltek Architecture Billings Index "remained in negative territory," falling to 46.8 in June from May's 47.2, according to a Wednesday news release.
“Business conditions were soft nationwide in June, with a slight billing increase in the South for the first time since October,” Kermit Baker, AIA chief economist, said in a statement. “Other regions saw declining billings, though at a slower pace."
One potential positive from June's data is that inquiries into new projects increased for the second straight month.
However, the group warned that "inquiries do not necessarily translate into actual projects" and noted that "it is unlikely that firm billings will return to positive territory until the value of new design contracts also starts to increase again."
Unemployment claims are at a three-month low
The number of people who filed for unemployment assistance is at its lowest level since April.
In the week ended July 19, there were 217,000 claims, according to data the Labor Department released on Thursday. That's 4,000 fewer claims than the previous week, marking the sixth straight week of declines.
The department said the decrease is slightly larger than seasonal norms.
New York, Nevada, Texas, Georgia, and Pennsylvania saw the largest upticks in claims, while Michigan, New Jersey, Tennessee, Kentucky, and Iowa reported the largest decreases.