Shelter Six:  1st Quarter GDP Much Stronger Than Expected

1st Quarter GDP was up an astounding 3.2%, much stronger than expected and significantly higher than the 4th Quarter’s 2.2%.

In fact, this was the best 1st Quarter since 2015, and came despite the government shutdown and severe weather across the country.

March Existing Home Sales were disappointing and 5% lower than a year ago.

March New Home Sales, however, were stronger than expected and at the highest level since November 2016.

An industry-wide event will take place over the next couple of years as the London Interbank Offered Rate (LIBOR), the leading index for ARM’s, is scheduled to terminate at the end of 2021 and be replaced with the Secured Overnight Financing Rate (SOFR).

Shelter’s Smart Series portfolio loan program now offers a 95% option with no PMI as well as a 40-Year Fixed-Rate Interest-Only option.

Rate Update

Rates normally shoot up when strong economic news is released, but actually fell last week despite the strong GDP figures because inflation was much tamer than expected.

This Week

The Core PCE Price Index is due out on Monday, the ISM National Manufacturing Index on Wednesday, and both the ISM National Services Index and Employment figures on Friday.  The next Fed meeting also takes place on Wednesday.

April 29, 2019 by · Leave a Comment

About James

James A. Williamson is currently the Sr VP of Sales Development for Shelter Lending Services (formerly Fairfield Mortgage). James joined Shelter in 1994 and was the company's top Loan Officer in GA for 20 straight years helping over 2500 families finance their homes. James now oversees an incredible group of Loan Officers in Atlanta while further building Shelter's Atlanta business.

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