According to Fannie Mae’s Economic and Mortgage Market Analysis Group’s most recent news release, the housing market is headed in the right direction based on economic activity during the fourth quarter of 2011. The end of the year saw economic growth of more than 2.5 percent, as well as improving employment numbers and housing data. But, despite ending 2011 with some of the year’s strongest economic data, Fannie Mae’s chief economist Doug Duncan says there is still uncertainty in the market. According to Duncan, the housing market will likely remain subdued this year due to potential increases in distressed sales and stresses in the financial markets due to economic volatility in Europe. More here.