Friday, October 18, 2013

Government Shutdown Impact on Loans & Rates

 This is an update from a loan officer that I work with often. He is one of the best! Feel free to call or email him with any questions regarding loans:

"The government shutdown has come to an end, but how does the House's last minute deal and the post-shutdown environment impact mortgage rates?

With the debt ceiling stalemate in Washington resolved at least until February 7, 2014, rates could dip in the short term. Home builders stalled by the government shutdown will resume confidence and government-affiliated mortgages such as FHA, VA, USDA and FEMA loans will continue running smoothly.

But over the long term, mortgage rates are expected to rise...

The Federal Reserve is committed to "taper," or reduce its recent purchases of bond buying, which it had started doing to stimulate the economy. As the economy strengthens, tapering will begin. When? Nobody knows for sure, but when it does, rates will begin to rise—and possibly faster than consumers will be able to anticipate."

Dave Duke, Rocky Mountain Mortgage
(801) 724-7230