End of Government Shutdown Sends Interest Rates Downward
Tuesday, October 22, 2013 • 11:52am
The government ended its 16-day shutdown and Congress agreed to extend the U.S. Treasury's debt ceiling. Both moves instilled confidence in the U.S mortgage bond market and moved rates downward, leaving the 30-year fixed mortgage at its lowest level in 4 months.
Delayed economic reports will be released over the next few weeks. However, we may see some distorted data due to the backlog and the effects of the shutdown. The key reports this week are the delayed September employment report due on Tuesday and New Home sales on Thursday. The shutdown has also impacted the Fed's confidence in the economic data going forward and the need to re-evaluate the tapering program. The current economic uncertainty will likely delay the Fed's first reduction in bond purchases until at least next March.
This column takes a look at current mortgage rates, market trends and indexes. Jon Lamkin is Vice President of Mortgage Lending for Guaranteed Rate, 322 Route 46 W Suite 170 • Parsippany, NJ • 07054. He may be reached at 973.939.8661 / firstname.lastname@example.org / www.guaranteedrate.com/jonlamkin
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