The news had the reports front and center about the recent GDP/Gross Domestic Product outcome, and many I’m sure are wondering, “how will this change the mortgage rate market in the short term?”
Here’s the skinny on it.
Economists expected the growth to fall by 5.4 percent, but it only fell by 3.8 percent. Talking to my mentor and partner in business, he said it just right when trying to express this in layman’s terms. He said,
“imagine that economists expected a ‘category 5 hurricane, but we got a category 3′”.
What it means is, the fall in growth still means we are not making our way back into the thriving economy yet, but the good news is that we are not as bad off as we thought. Unfortunately, since we fell less than the economist projected, it didn’t maximize the amount of positive affect we could have had on lowering interest rates.
Define GDP/Gross Domestic Product– this measures consumption and spending inside the United States
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