Economy Slumps, Experts Predict Rate Rise in September

by Osman Parvez
Good news!   GDP came in at 0.2% in the first quarter, far slower than the 1% consensus forecast.  

Why is that good news?   Because the inventory shortage has been relentless on the front range, everywhere from Denver to Ft. Collins.   Low supply and high demand has been driving up prices at very high rates, an unsustainable pace in my opinion. 

It's impossible to call the top of a economic cycle, but bad news might encourage some owners to sell into this still rising market.  Am I cheering economic softness?  You bet.   Maybe we'll start to see prices level out and as more inventory enters the market. 

What about mortgage rates?
The Fed’s long-awaited liftoff on its benchmark interest rate won’t happen until September, according to economists surveyed by Bloomberg, as officials try to spur inflation and hiring after the economy stumbled in the first quarter. Policy makers are due to release a statement later in the day.

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This document contains forward-looking statements. You are strongly cautioned that investment results are subject to business, economic and other uncertainties. There are no guarantees associated with any forecast and the opinions stated here are subject to change at any time. Always consult your financial advisor before making an investment decision.