Housing markets

The potential impacts of import tariffs cloud the outlook, though, and could lead mortgage rates to surge and fall throughout the coming year.

Meanwhile, home prices are set to grow 3 to 4% in 2025, a Fitch report predicts.

The latest refinance surge helped lift total application activity up for a second straight week, even as purchases fell, the Mortgage Bankers Association said.

Most participants in a monthly Wolters Kluwer survey no longer think the next short-term rate reduction will be in March.

On an annual basis, home prices grew by 4.2% in November, FHFA's index found.

Higher mortgage rates will persist through 2026, affecting sales and refinancings. Those expectations led Fannie Mae to cut its volume outlook for the next two years.

Even though senior home values are still near the all-time high, other data shows fewer are turning to reverse mortgages to ease a potential financial crunch.

The share of underwater mortgages also grew for the first time in almost two years during the third quarter, Corelogic found.

The latest plans include details on promoting housing development in underserved areas and increasing secondary market access to rural institutions.

Those born between 1997 and 2012 will go from making up a scant 6% of today's market to a 25% share by 2028, and mortgage lenders need to be ready to serve them.