NAR Lowers Sales Predictions

NAR Lowers Sales Predictions

The National Association of Realtors has lowered its expectations for the housing market this year to reflect stricter lending standards and the decline in mortgage originations to borrowers with poor credit.

The association said it expects existing-home sales of 6.29 million in 2007, lower than sales of 6.48 million in 2006, though it forecast a rebound to 6.49 million in 2008.

The association predicts the 30-year fixed-rate mortgage should edge up to 6.5 percent by the fourth quarter.