In their most-recent monthly economic outlook, Fannie Mae’s Doug Duncan and Orawin T. Velz write that, though the current economic expansion has been disappointing, they believe the likelihood that the economy will slip into another downturn is still quite low. According to Duncan and Velz, employment remains key to the outlook for the economy and housing market and only a faltering labor market could jeopardize the projected rebound in home sales later this year. Evidence of declining shadow inventory and distressed sales, along with high housing affordability and low mortgage rates, offer positive signs for a housing market that has, so far this year, been volatile. More here.