Economic Forecast: January 2015

ECONOMIC AND STRATEGIC RESEARCH

National Income and Product Accounts (Chained 2009$)

Percent Change: Quarterly SAAR, Annual Q4/Q4

Gross Domestic Product

Personal Consumption Expenditures

Residential Fixed Investment

Business Fixed Investment

Government Consumption & Investment

Billions of Chained 2009$

Net Exports

Change in Business Inventories

Income (Billions of Nominal $)

Disposable Personal Income

Percent Change: Quarterly SAAR, Annual Q4/Q4

Price Indices

Percent Change: Quarterly SAAR, Annual Q4/Q4

GDP Price Index

Consumer Price Index

Consumer Price Index excl. Food & Energy

Employment

Unemployment Rate (Percent)

Employment, Total Nonfarm Establishment Survey (Percent Change: Quarterly SAAR, Annual Q4/Q4) Q4/Q4)

Interest Rates (Percent)

Federal Funds Rate

1-Year Treasury Note Yield

10-Year Treasury Bond Yield

January 12, 2015

Note: Interest rate forecasts are based on rates from December 31, 2014.

Note: Unshaded areas denote actuals. Shaded areas denote forecasts.

Sources: Actuals: Bureau of Economic Analysis, Bureau of Labor Statistics, Federal Reserve Board. Forecasts: Fannie Mae Economic & Strategic Research

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) group included in these materials should not be construed as indicating

Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend

on many factors. Although the ESR group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided

in these materials is accurate, current or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results.

14.1 14.2 14.3 14.4 15.1 15.2 15.3 15.4 2012 2013 2014 2015 2016

-2.1 4.6 5.0 3.0 3.4 3.2 2.9 2.7 1.6 3.1 2.6 3.1 2.5

1.2 2.5 3.2 4.0 3.6 3.2 2.8 2.8 2.0 2.8 2.7 3.1 2.5

-5.3 8.8 3.2 6.4 3.7 5.0 6.5 7.4 15.8 6.9 3.1 5.6 6.1

1.6 9.7 8.9 1.2 2.9 5.6 4.9 4.5 3.7 4.7 5.3 4.5 3.6

-0.8 1.7 4.4 -0.6 -0.6 0.2 0.3 0.3 -1.7 -1.9 1.1 0.0 0.4

-447 -460 -431 -437 -433 -409 -387 -388 -452 -420 -444 -404 -363

35 85 82 89 109 90 72 72 58 64 73 86 53

12,773 12,945 13,050 13,130 13,257 13,364 13,488 13,627 12,384 12,505 12,975 13,434 13,986

4.8 5.5 3.3 2.5 3.9 3.3 3.8 4.2 6.7 -0.8 4.0 3.8 4.3

1.3 2.1 1.4 1.1 0.9 1.8 1.7 1.9 1.8 1.4 1.5 1.6 2.1

1.9 3.0 1.1 -0.9 -0.8 2.1 2.0 2.2 1.9 1.2 1.3 1.4 2.1

1.6 2.5 1.3 1.5 1.7 1.6 1.8 2.0 1.9 1.7 1.7 1.8 2.0

6.6 6.2 6.1 5.7 5.5 5.4 5.3 5.2 8.1 7.4 6.2 5.4 5.2

1.5 2.2 2.1 2.4 2.5 2.5 2.2 1.9 1.7 1.8 2.0 2.3 1.6

0.1 0.1 0.1 0.1 0.2 0.2 0.4 0.6 0.1 0.1 0.1 0.4 1.1

0.1 0.1 0.1 0.1 0.4 0.5 0.7 1.0 0.2 0.1 0.1 0.7 1.6

2.8 2.6 2.5 2.3 2.2 2.3 2.3 2.4 1.8 2.4 2.5 2.3 2.5

--------------- 2014 --------------- --------------- 2015 ---------------

The analyses, opinions, estimates, forecasts, and other views published by the ESR group represent the views of that group as of the date indicated and do not necessarily represent the views

of Fannie Mae or its management.