Economy Watch

The US economy is growing faster than expected. Expect mortgage rates to react by going up a bit. When the economy is strong money flows to stocks – since you can make more there – bond prices fall and its yield (interest rates) go up.

Reuters Business News: Economy grows 3.5 percent in fourth quarter – MSN Money: “WASHINGTON (Reuters) – The U.S. economy grew at a stronger-than-expected pace in the final quarter of last year, boosted by robust spending and slowing inflation that more than offset the biggest decline in housing activity in 15 years, a government report on Wednesday showed.”

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