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Lehman Brothers Holdings Inc. economists in a report Thursday said that a “pullback” in mortgage lending will prolong the U.S. housing recession and trigger job losses in the real estate, construction and mortgage industries. Home sales and construction starts will continue to decline through the middle of 2008 and national home prices will fall “modestly,” Michelle Meyer and Ethan Harris said in the report. Their conclusion: “The housing recession looks far from over.”  More…

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