Fannie Mae, a government-sponsored enterprise (GSE) that provides mortgage rates and the housing market, has dropped its March Housing Forecast. The company's predictions for mortgage rates were more optimistic than in February, but its expectations for new construction on single-family housing worsened for most of 2026. This shift is seen as a double-edged sword: Lower mortgage rates make housing more affordable, but increasing competition increases prices. Fannie Mae’s March Economic Forecast also predicted slower gross domestic product (GDP) growth than its February forecast, indicating a weaker economy in the next few years. The GSE also changed its predictions for single-home construction for the first three quarters of 2025.