Home Loan Rates Are Great Today

The latest advance gross domestic product data indicated the US economy grew at a 0.6 percent rate in the first quarter.  Fed officials remain concerned that inflation is rising and the economy is heading towards recession.  Many analysts believe the economy is already in one.  This data was mixed with the GDP price index rising 2.6% in the first quarter compared to a 2.4% increase in the fourth quarter. 

Productivity is the rate at which goods or services are produced.  It is most commonly defined in terms of labor, which is the contribution of people to the process.  Labor costs represent about two thirds of the value of the output produced.  The Bureau of Labor Statistics of the US Department of Labor releases the most widely cited productivity statistics quarterly and annually.  Increased productivity is often credited for economic growth with little signs of inflation.

Productivity is significant because as it increases, businesses can produce more with the same or less input.  This wealth building effect is vital to the US economy.  As productivity increases, the US economy generally performs better.  As productivity decreases, the economy generally suffers.

While the bond market generally favors signs of weakness in the economy, bonds tolerate growth as long as the economic environment shows little or no inflationary pressures.  Unfortunately, inflation has escalated as of late.

Keep in mind that rates remain historically very favorable.  Now is a great time to avoid the uncertainty surrounding continued market volatility by locking your loan.  Capitalizing on current levels is prudent to protect against future volatility.