Fannie Mae says unsold homes are slowing recovery

ECONOMY

Fannie: Excess homes weighing on recovery

Fannie Mae's economic and mortgage market analysis group said Monday that the housing market is stabilizing but that excess inventory continues to hinder a recovery.

The D.C.-based mortgage giant released a report that projects economic growth of 3.1 percent for 2010. Doug Duncan, Fannie's chief economist, said the unwinding of programs such as mortgage-backed securities are evidence of viability for the industry without federal aid.

New-home sales are at record lows and will remain slow, Fannie said, but it pointed to signs of recovery in existing-home sales.

-- Associated Press

INVESTING

American Capital prices stock offering

Private equity firm American Capital announced that it has priced a $295 million offering of common stock to a group of institutional investors. It will sell 58.3 million shares of its common stock to the investors at $5.06 a share. The offering is expected to close Thursday. The Bethesda firm will use the proceeds in part to invest, lend and repay debt.

-- Associated Press

EXECUTIVES

General Dynamics names senior VP

General Dynamics of Falls Church said Monday that it recruited Robert W. Helm, an assistant secretary of defense in the Reagan administration and 21-year Northrop Grumman executive, to be senior vice president of planning and development.

Helm, set to join on May 3, will oversee government and investor relations and strategic planning, among other duties.

-- Associated Press