U.S. economic growth is expected to post a modest reacceleration in the second half of 2013 as the labor market regains traction amid improvement in the conditions of the financial and housing markets, according to Fannie Mae’s Economic and Strategy Research Group.

"Our May forecast predicts that the second half of 2013 will be a little stronger than the first half, despite the slowdown during the past couple of months,” said Fannie Mae Chief Economist Doug Duncan. “Employment numbers are getting better, albeit it at a relatively slow pace, and the April employment picture should help boost consumer sentiment toward the economy overall.”

Housing is growing at a sustainable pace and should be a tailwind for the economy into 2014, according to the group.