After rising in 2014 and the first part of 2015, remodeling activity may slow through the middle of the year and then rebound by year-end, according to the latest edition of the Leading Indicator of Remodeling Activity (LIRA), an index compiled by Harvard’s Joint Center for Housing Studies.

“One of the largest contributors to this dampening of remodeling growth in 2015 is the sluggish existing home sales activity last year,” Chris Herbert, managing director of the Joint Center, said in a statement. “Housing turnover typically sparks significant improvement spending as new owners customize their recent purchases to fit their needs and, with sales down last year, remodeling will feel the effects this year.”

Overall, the LIRA projects annual spending for home improvements will be up 2.9 percent in 2015.

“Moving forward, signs of higher growth in remodeling activity include strengthening retail sales of building materials,” Abbe Will, a research analyst in the Remodeling Futures Program at the Joint Center added in a statement. “Also, rising home equity and still favorable interest rates continue to encourage owners to reinvest in their homes.”