Economy Will Bounce Back in Q2 But Don't Expect Housing to Lead Way

The economy will bounce back in the second and third quarters after being slowed down by bad weather and a strong dollar the first three months of 2015, said Luke Tilley, Chief Economist at Wilmington Trust. Tilley added that the consumer will indeed start spending the dividend from lower oil prices in the spring and this should accelerate growth in the domestic economy. He said the housing sector is facing affordability challenges due to the fact that wage growth has only been a recent phenomenon and it could get slightly more challenging when interest rates rise later this year.