gdp: Housing Market Hits GDP, Inflation an Issue
- 04/27/07 04:03 AM
The Government reported a slow down in GDP growth with the housing market taking a big bite, almost 1%, out of the GDP number. The most current reading shows a growth rate of 1.3%, down sharply from 4th quarter 2006 of 2.5% growth rate. The article on CNN, http://money.cnn.com/2007/04/27/news/economy/gdp/index.htm?postversion=2007042711. Normally these types of numbers would translate into lower mortgage rates. However, in these numbers there is a real increase in inflation, the core PCE deflator rose 4%, as opposed to 1.7% in the previous quarter. This means that everyday items, excluding volatile energy and food prices, have increase 4% in the quarter, … (1 comments)
The Government reported a slow down in GDP growth with the housing market taking a big bite, almost 1%, out of the GDP number. ;)
;)
