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US economy grew at strong 4 percent rate in second quarter after sharp contraction in winter

After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending.

The Commerce Department says the second-quarter rebound followed a sharp 2.1 percent annualized drop in economic activity in the January-March quarter. That figure was revised up from a previous estimate of a 2.9 percent decline. But it was still the biggest contraction since early 2009 during the depths of the Great Recession.

Last quarter's rebound was broad-based, with consumers, businesses, the housing industry and state and local governments all combining to boost growth.

Economists expect that momentum to continue in the second half of this year, when they forecast growth of around 3 percent.

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Loan Type Graph Rate +/- Last Week
30 Y Fixed Graph 3.99% dw 4.00%  
15 Y Fixed Graph 3.06% dw 3.11%  
30 Y Fixed Jumbo Graph 4.15% dw 4.20%  
5/1 ARM Graph 3.20% -- 3.20%  
5/1 Jumbo ARM Graph 3.48% -- 3.48%  
Loan Type Graph Rate +/- Last Week
$30K HELOC Graph 4.32% up 4.30%  
$50K HELOC Graph 3.98% up 3.96%  
$30K Loan Graph 4.99% -- 4.99%  
$50K Loan Graph 4.34% -- 4.34%  
$75K Loan Graph 4.36% -- 4.36%  
Loan Type Graph Rate +/- Last Week
36 M New Graph 2.93% dw 2.94%  
36 M Used Graph 3.47% dw 3.49%  
48 M New Graph 3.19% dw 3.20%  
48 M Used Graph 2.99% -- 2.99%  
60 M New Graph 3.19% dw 3.20%  
Loan Type Graph Yield +/- Last Week
6 month Graph 0.39% -- 0.39%  
1 yr Graph 0.70% -- 0.70%  
5 yr Graph 1.55% -- 1.55%