Cramer Quick Take: I'm Bullish on Second-Half GDP
The effects of the sequestration may finally be weighing on U.S. growth, which was evident when the third revision to the first-quarter GDP data showed a fall to anemic levels, below 2%.
Borchardt added that many people are depending on utility spending to increase GDP, which is a little bit "scary" if we're hoping increased costs to consumers is what's going to get us higher.
Although the Federal Reserve didn't say it was raising rates, that didn't stop mortgage rates from ripping higher, now above 4%.
According to Cramer, this will be bad for the housing market since it may keep potential buyers on the sidelines. However, he expects that market to rebound in three to six months, which should positively affect second-quarter GDP.
Before the market took a small breather, which has pumped life back into equities, we saw 10-year Treasury yields jump to 2.5% and it's still going to take investors a little while to sort everything out, Cramer said.
He added the market will be especially judgmental of the June and July economic data, specifically in the housing industry, where the effect of reduced mortgage refinancing will be under the microscope.
Cramer still expects to see 2.5% to 3% in GDP growth for the second half of 2013, saying he believes in Fed Chairman Ben Bernanke and anticipates a strong fourth-quarter housing market.
-- Written by Bret Kenwell in Petoskey, Mich.