If you’ve been watching the housing market, you know one thing: mortgage rates have been the headline story for the past two years. Every buyer, seller, and even renters on the fence about ownership have been asking the same question—“Where are rates headed next?”
Recently, Fannie Mae—one of the most closely watched voices in housing—released an updated forecast that gives us a clearer picture of what to expect over the next 18 months.
The Forecast: Where Rates Are Headed
According to Fannie Mae’s latest projections:
While those numbers may not sound like the “historic lows” of 2020 and 2021, they represent a significant shift compared to the higher-for-longer environment buyers have been facing. And in real estate, even small shifts in interest rates can create big changes in buyer demand and affordability.
Why This Matters for Buyers
So, what does this mean if you’re planning to buy a home in [City] or anywhere else in the next couple of years?
Why Planning Now Matters
Here’s the truth: you don’t need to predict the exact moment rates will fall—you just need to be ready when they do.
That means:
What This Means for [City] Buyers
Locally, this forecast could reshape the Petaluma housing market in 2025 and 2026. Lower rates will likely draw sidelined buyers back into the market, especially those who’ve been renting longer than they planned. Inventory may loosen slightly, but demand could outpace supply—keeping competition strong in popular neighborhoods.
For buyers, that means two things:
Final Thoughts
Yes, mortgage rates are projected to dip over the next two years. But the real takeaway isn’t the numbers—it’s how you respond to them.
The winners in the next market cycle won’t be the buyers who wait until everyone else jumps back in. They’ll be the ones who started planning ahead, understood their financing options, and positioned themselves to act with confidence.
So don’t wing it. Take ten minutes now to map out your mortgage game plan. When the right home hits the market, you’ll be ready to move—without stress, without scrambling, and without regret.
