Analysts from Fannie Mae’s Economic & Strategic Research Group are forecasting gains for the spring and summer season. After a slow start to the year, economic growth is expected to pick up in the second quarter and continue to build through the end of the year. Doug Duncan, Fannie Mae’s chief economist, said economic and housing growth will emerge from the tough winter weather and gain momentum into the spring and summer seasons. According to Duncan, fiscal and monetary policy jitters have waned and recent employment numbers came in at reasonable levels. Those improvements should help economic activity and boost the housing market. In fact, Fannie Mae expects a nearly 20 percent increase in housing starts this year and an improved market for newly built homes. The new home market faces less competition from foreclosures and distressed properties, Duncan said. And, with supply low, new home sales should continue to perform well. Generally, Fannie Mae expects the rise in home prices and mortgage rates to take a toll on sales and homebuilding, though they are forecasting modest gains for housing overall this year. More here.