The U.S. economy is “flirting with another economic downturn,” according to a release from Fannie Mae. Essentially, things might be OK as long as there aren’t any more significant economic shocks.

[T]he recovery’s fragility makes it vulnerable to any additional shocks that might cause the economy to slip back into a recession. Possible shocks include a deepening of the financial turmoil in Europe; a dramatic slowdown in emerging economies, especially China; and renewed unrest in the Middle East that could send oil prices surging again.

And all this, of course, isn’t doing real estate any good. Quoth: “The weakening economic backdrop, a persistently high unemployment rate, and fear of a double-dip recession are casting a shadow over the housing market.”

Click here to read the whole release.