NEW YORK (CNN/Money) - Home sales are poised to set their fifth straight annual record, according to the latest forecast from an industry trade group.

The National Association of Realtors said continued low mortgage rates have supported strong sales longer than it had previously forecast.

The rate on the average 30-year fixed-rate mortgage fell to a 15-month low of 5.62 percent in the week ending June 2, according to a survey by mortgage financier Freddie Mac. It marked the 10th week in the last 11 that the mortgage rate had declined.

"Not only have mortgage interest rates declined, but an expected rise in the second half of the year will be slower than in earlier projections," David Lereah, NAR's chief economist, said in a statement. "As a result, we now expect to set records for both existing- and new-home sales this year."

The realtors' group originally projected a 2 percent drop in home sales from 2004 record sales of 6.78 million previously owned homes. Now it expects sales to increase to 6.89 million homes. Sales came in at a record annual pace of 7.18 million homes in April.

The group sees new-home sales also rising to a record 1.24 million from 1.20 million in 2004. New-home sales also hit a record annual sales pace of 1.32 million in April.

The pace of both new- and existing-home sales is expected to finally retreat in 2006, with existing-home sales now projected to slip to 6.57 million in 2006 and new-home sales predicted to decline to 1.16. But even if 2006 sales hit those levels they would still be among the best sales years on record.

Housing starts are forecast to rise to 2.02 million this year, which would be the best year since 1973, from the 1.96 million housing starts seen in 2004.

The use of nontraditional mortgages, such as interest-only loans, have grown in the last year and the realtors said those new mortgage products have also helped support sales. It did warn that the new products pose increased risk to home buyers.

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