Fed Funds Rate History
Recession has become the new buzz word of the media over the last few weeks. With mortgage write-downs hurting lenders and shutting many consumers out of the mortgage process, it stands to reason that an economic recession will have some effect on mortgage rates.
A Recession Defined
A recession is defined as a decline in a country’s Gross Domestic Product (GDP) for two or more successive quarters. In laymen terms, a recession is a slowdown in the growth of an economy. This can be felt by consumers in an increase in the unemployment rates, usually coupled with less spending by consumers and/or businesses. The tricky thing about recessions is that a period can only be called a recession after the fact. Additionally, once it has been established that the economy is in a recession, it takes two quarters (six months) to determine when the economy is out.
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