A stronger job market and easing lending standards are expected to prompt more Millennials to go house hunting this year.

As a result of this increase in demand home prices are expected to rise by just over 4%, according to CoreLogic Case-Shiller.

Related: Housing 2015: The return of first-time home buyers

Meanwhile mortgage rates — which ended 2014 below 4% -- won't stay that cheap forever. Housing experts predict the Federal Reserve will finally raise short-term interest rates, which will push mortgage rates higher.

Still, the 30-year fixed rate likely won't rise above 5% -- which is still a bargain historically, said Bankrate's McBride.

CNNMoney's Les Christie contributed to this report.