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Politics : Liberalism: Do You Agree We've Had Enough of It? -- Ignore unavailable to you. Want to Upgrade?

To: tonto who wrote (91045)	9/15/2010 10:06:35 AM
From: Hope Praytochange	Respond to of 224724

Economy Continues to Grow, But at a Very Modest Pace According to Fannie Mae's Economics & Mortgage Market Analysis Group 09/15 08:45 AM WASHINGTON, September 15, 2010 /PRNewswire/ -- WASHINGTON, September 15, 2010 /PRNewswire/ -- - Housing Bottom Proves Elusive - Economic Outlook Podcast Available Soft consumer spending coupled with ongoing labor market duress have precipitated downgraded growth expectations for the remainder of 2010 and most of 2011, according to the September 2010 Economic Outlook released today by Fannie Mae's (FNMA:$0.275,0$-0.007,0-2.48%) Economics & Mortgage Market Analysis Group. For all of 2010, the group expects growth to come in at 2.2 percent, before gradually strengthening modestly to 2.5 percent in 2011. Demand for housing also continues to struggle despite home price declines and drops in interest rates to generational lows, reflecting household concerns about personal finances and weak employment prospects. "We continue to see a supply and demand imbalance in the housing sector with very low levels of sales activity. This is further delaying housing's return to normalcy," said Fannie Mae (FNMA:$0.275,0$-0.007,0-2.48%) Chief Economist Doug Duncan. "At this point in the post-recession cycle, housing is usually contributing to economic growth. In our current environment, slow housing growth is detracting from overall economic growth. Very low mortgage rates are spurring refinance activity, but we don't expect low rates to boost purchase activity as long as the labor market remains weak." For an audio synopsis of the September 2010 Economic Outlook, listen to the podcast on the Economics & Mortgage Market Analysis (http://www.fanniemae.com/media/economics/index.jhtml?p=Media&s=Economics+%26+Mortgage+Market+Analysis) site at fanniemae.com. Visit the site to read the full September 2010 Economic Outlook, including the Economic Developments commentary, Economic Forecast, and Housing Forecast.