Markets & Economy

Housing markets poised to regain some lost momentum

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Having weathered a soft patch that lasted through the fall, winter and early spring, housing markets are showing signs of a rebound that should continue for the rest of the year, according to the latest forecast by economists at Fannie Mae. Although the revival won't be enough to push 2014 existing-home sales past last year's mark, strong growth for 2015 is foreseen. After getting off to a slow start, Fannie Mae projects existing-home sales will end up declining 2.4 percent from 2013 to 2014, to 4.97 million. Not bad, considering sales were off by more than 7 percent during the first five months of the year compared to the same period the year before. But Fannie Mae is forecasting that the current rebound in sales will continue next year, with existing-home sales projected to grow by 5.3 percent in 2015, to 5.23 million. One surprise this year has been the decline in mortgage rates, even as the Federal Reserve tapers its purchases of mortgage-backed securities. Rates on...