Economic growth took a hit in the first quarter of 2015 due to temporary factors, including the West Coast port strike and tough winter weather in parts of the country, according to Fannie Mae’s Economic and Strategy Research Group. However, much of the economic activity expected at the beginning of the year should shift into the second quarter with growth strengthening in coming quarters.

Upbeat labor market conditions and positive consumer and business fundamentals should push growth to 2.8% this year, up from 2.5% growth in 2014.

“We continue to expect the economy to drag housing upward as we move into the second quarter,” said Fannie Mae Chief Economist Doug Duncan. “The economy is getting a boost from the strong employment numbers we've seen last year and at the start of 2015. When this employment growth partners with income growth and consumers experience a rise in their personal household income, we should see a similar boost in the housing sector. Overall, we expect an improving 2015 with continued economic growth bringing housing above 2014 levels.”