Continued Up Swing in GDP - However Slight - Helps Balance Economic Worries
June 2nd, 2008 Categories: Mortgage Update, Real Estate News
The Gross Domestic Product (GPD) numbers came in this last week at 0.9%. While well below what economists would call healthy, it was enough to start the reverse some recession-leaning positions.
As quarterly reports with the GDP above zero continue, the probability of recession becomes even less likely.
Overall this is good economic news but the downside is that any acceleration in the economy is likely to lead to increased inflationary pressure and mortgage rates MAY creep upward.
Two important economic reports will come out this week - the ISM Manufacturing Index and monthly unemployment data. I will have more on those next Monday and their impact on the market.
In the meantime, remember that in today’s market the right price - not the number of bathrooms or the state of the kitchen - makes all the difference.
As always, thanks to Rob Clark at Preferred Mortgage for his insight.
Michael
