Mortgage Blog

Sorry, I was out for a field trip. But the rates stayed the same as yesterday, so I don't need to update it anyway. :)+.

Here is an article I just got from my subscription:

Nothing good ever comes out of a government shutdown,
except for lower mortgage rates. Follow my logic here.
The 'Tea Party' folks in Congress hold to their
principles and the GOP doesn't come to terms with
Democrats. The government shuts down Friday night
and both sides hold their positions, refusing to
compromise.

This thing drags on and local economies that depend
on tourist dollars tied to national parks begin to
feel the pain. Now here's the biggie: the stock
market tanks and investors flee for the safety
of U.S. Treasury bonds.

The price of bonds spike and rates fall, including
mortgage rates. Sounds like a rosy scenario, for
homebuyers at least.

Of course, if a homebuyer needs a Federal Housing
Administration loan, that won't happen. The FHA
is deemed "non-essential" and will close for
business once government funding stops. Also,
federal workers hoping to buy a home will
be out of luck because they are out of work.