Lake Tahoe Mortgage Rates and Lake Tahoe Home Loan Rates:
The U.S. economy received some bad news this morning as the government reported that growth in the first quarter slowed due to a decline in consumer spending and lower business investments. The Gross Domestic Product fell to 1.8% in the final read for the first quarter of 2013, down from the previous reading of 2.4%. There are 3 readings that the Commerce Department releases for quarterly growth and it measures the output of goods and services produced by labor and property located in the U.S.
Due to the recent rise in home loan rates, mortgage application volume has been declining each week. The Mortgage Bankers Association reported today that its Market Composite Index, a measure of loan application volume, fell 3% last week. The rise in rates is due to talk that the U.S. Federal Reserve Bank could begin to decrease its purchases of Bonds each month that was enacted to promote growth through lower interest rates. The refi index declined by 5% while the purchase index rose 2%.
The unemployment picture remains cloudy here in the U.S. currently at 7.6% for the unemployment rate. Federal Reserve Bank of Minneapolis President Narayana Kocherlakota said this morning that he would like the current Bond purchase program to remain intact until such time that the rate falls below 7% for a sustained period. Mr. Kocherlakota is not a voting member of the Federal Reserve this year.