Fannie Mae Economist Sees Higher Home Sales This Year

Washington, DC, Jan. 5, 2015 -- Sales of new and existing homes this year will likely gain 5.4% to 5.7 million after falling 2.7% in 2014, according to Fannie Mae chief economist Douglas Duncan in a Bloomberg News story.

He also said lending for home purchases probably will grow to $714 billion from $672 billion last year.

He noted that while tight lending standards have had an effect, weakness in demand has been even more important. But an improving economy, especially an improving job market, should make a difference for potential first-time buyers and other renters who would like to own a home.

With a lack of first-time buyers, current homeowners haven't been able to trade up as readily, which has kept demand low.