Home sales expected to pass last year’s record

The volume of home sales this year will be stronger than projected and should surpass last year’s record, according to the National Assn. of Realtors.

The trade group’s chief economist, David Lereah, expects 5.73 million existing home sales this year, up 2.9% from a record 5.57 million sales in 2002. New home sales should rise 3.1% from last year’s record to 1 million units. At the same time, housing starts are projected to rise 0.5% to 1.71 million units.

“Lower than expected mortgage interest rates have brought more buyers into the housing market, offsetting sluggish economic growth and weakness in the labor markets,” Lereah said.