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US economy slowed to 0.1 percent growth rate in Q1, weakest in year, reflecting harsh winter

The U.S. economy slowed drastically in the first three months of the year as a harsh winter exacted a toll on business activity. The sharp slowdown, while worse than expected, is likely to be temporary as growth rebounds with warmer weather.

The Commerce Department says growth slowed to a barely discernible 0.1 percent annual rate in the January-March quarter, the weakest since the end of 2012 and down from a 2.6 percent growth rate in the October-December quarter.

Consumer spending grew at a 3 percent rate. But the gain was dominated by a 4.4 percent rise in spending on services, reflecting higher utility bills. Spending on goods barely rose. Also dampening growth were a drop in business investment, a rise in the trade deficit and a fall in housing construction.

Bank Rates

Loan Type Graph Rate +/- Last Week
30 Y Fixed Graph 4.28% dw 4.30%  
15 Y Fixed Graph 3.24% up 3.18%  
30 Y Fixed Jumbo Graph 4.55% dw 4.58%  
5/1 ARM Graph 3.41% dw 3.53%  
5/1 Jumbo ARM Graph 3.55% dw 3.59%  
Loan Type Graph Rate +/- Last Week
$30K HELOC Graph 4.36% up 4.34%  
$50K HELOC Graph 4.06% -- 4.06%  
$30K Loan Graph 5.07% up 4.98%  
$50K Loan Graph 4.51% up 4.39%  
$75K Loan Graph 4.51% up 4.39%  
Loan Type Graph Rate +/- Last Week
36 M New Graph 2.92% up 2.91%  
36 M Used Graph 3.43% up 3.42%  
48 M New Graph 3.18% up 3.17%  
48 M Used Graph 2.92% -- 2.92%  
60 M New Graph 3.19% up 3.18%  
Loan Type Graph Yield +/- Last Week
6 month Graph 0.35% up 0.34%  
1 yr Graph 0.66% -- 0.66%  
5 yr Graph 1.35% up 1.34%