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RISMEDIA, January 19, 2011—Thanks to strengthening in consumer spending and growing policy clarity at the end of 2010, the economy is finally poised to accelerate and sustain above-par, less volatile growth, according to the January 2011 Economic Outlook released by Fannie Mae’s Economics & Mortgage Market Analysis Group. The economy is expected to grow by 3.6% in 2011, compared to an estimated 2.8% in 2010. The group expects some increase in housing activity during 2011, however, a growth-oriented view of housing is not expected until 2012.

“The economy has regained momentum entering 2011 and we see significant improvement in the economy’s ability to grow compared to 2010,” said Fannie Mae Chief Economist Doug Duncan. “We expect a small rise in home sales this year, but significant amounts of supply and shadow inventory of expected foreclosures will continue to hamper a robust housing picture for some time.”

For more information, visit www.fanniemae.com.

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