Fannie Mae says unsold homes are slowing recovery

Fannie Mae's economic and mortgage market analysis group said Monday that the housing market is stabilizing but that excess inventory continues to hinder a recovery.

The D.C.-based mortgage giant released a report that projects economic growth of 3.1 percent for 2010. Doug Duncan, Fannie's chief economist, said the unwinding of programs such as mortgage-backed securities are evidence of viability for the industry without federal aid.

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