The decline in home sales in February was a disappointment to the housing industry, but Fannie Mae's analysts say it is temporary and a sustainable turnaround is likely by the end of the year.
 
Fannie Mae Chief Economist Doug Duncan points to evidence that a recovery is on its way, including an increase in consumer spending, an improving service sector, and the likelihood that employers will begin hiring soon.  "More favorable financial conditions overall keep us optimistic that we are moving forward with the recovery, albeit at a lower trajectory than previously forecast," Duncan said in a statement.

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