To the surprise of many economic analysts, mortgage rates have not begun a Rocky mountain hike to the 5 percent range. Instead, they've even dipped to new 2014 lows, hovering around the low 4 percent level. The truth is, the economic and housing recovery is not as strong as some expected, despite a raging stock market.
Reports released Friday show consumer spending dipped last month as inflation creeps up. This may be a temporary dip as unemployment levels continue falling, but the unemployment charts don't tell the full story.
Andrew Levin, a researcher at the International Monetary Fund, presented a couple of charts (shown above) that demonstrate how GDP growth has not matched unemployment drops. In other words, more well-rounded economic growth will be needed to produce a real shift in the housing market.