The recent government shutdown, debate over the debt ceiling, and ongoing fiscal uncertainty threatens to slow an expected pickup in overall economic growth this quarter, according to Fannie Mae’s Economic & Strategic Research Group. As a result, the ESR group has downgraded their forecast for full-year growth. But despite the slight change in projected economic activity, the housing market is expected to continue to improve. Doug Duncan, Fannie Mae’s chief economist, said these fiscal policy issues appear to have had only a minimal effect on the housing market and, because prices rose rapidly over the past year, household net worth should be able to withstand any fallout. Duncan added that the continuation of the Fed’s securities purchases should keep mortgage rates down, helping more homeowners take advantage of refinance opportunities. More here.