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Press Release

Fannie Mae Releases New Housing Insights Paper

September 12, 2012

Fannie Mae Releases New Housing Insights Paper: The Effect of Sluggish Job Earnings on the Economic Recovery

Pete Bakel


WASHINGTON, DC – Fannie Mae’s Economic & Strategic Research Group today released a new edition of Housing Insights that investigates how suppressed job earnings are affecting the recovery of the economy. The paper examines changes in average and aggregate earnings during the Great Recession and subsequent recovery, investigates the extent to which changes in employment and average earnings within industries have affected overall earnings growth, and compares recent trends with prior business cycles.

Findings in the paper suggest that a gradual, sub-par economic expansion may remain likely, given that earnings are a primary force behind economic growth and that it may take years before housing activity rebounds to levels typically associated with robust construction employment gains.

Visit the Economic & Strategic Research site at to read the full Fannie Mae Housing Insights Research Paper, as well as the FM Commentary from research authors Manhong Feng and Patrick Simmons, to learn more about the impact of job earnings on the economic recovery.

Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that Group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

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