A continued but modest rebound in the housing market and overall economy during the second half of 2014 are not likely to offset the sluggish pace of activity during the first two quarters of the year, according to Fannie Mae economists.

The economy is expected to grow approximately 3% in the second half of the year, but that's likely not enough to offset the first quarter, when the "economy experienced the worst performance in five years," and the second quarter, which experienced only "moderate pickup in growth," Fannie’s Economic & Strategic Research Group said in its July forecast.

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