The overall economy has moved from a fragile recovery to firmer, less volatile growth, but the housing market is not expected to grow accordingly until 2012, according to the latest Fannie Mae economic outlook.

Fannie Mae chief economist Doug Duncan said the economy would grow by 3.6% this year, up from 2.8% for 2010. There will be a small rise in home sales, but the significant supply of homes on the market and the shadow inventory of homes that are not yet foreclosed upon will continue to hamper the housing market for some time, he said.

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