RATES REMAIN AT LOWEST LEVELS SINCE JUNE – WHAT AFFECT DOES GOV’T SHUTDOWN HAVE ON RATES?

RATES REMAIN AT LOWEST LEVELS SINCE JUNE – WHAT EFFECT DOES GOV’T SHUTDOWN HAVE ON RATES?

October 7th, 2013

Interest rates remained at current levels last week with the bond markets in a stalemate because of the government shutdown.  Rates for the past 2 weeks have held at their lowest levels since June 2013. 

The government shutdown is keeping trading in narrow ranges as there is a lot of uncertainty how long this will last.  This along with the major issue of the debt ceiling just 10 days away is forcing traders to be cautious.

Govt shutdown

The debt ceiling is the much bigger issue as this could result in the US Treasury not paying their bills, which would have catastrophic effects on the economy and interest rates would go through the roof.

The debt ceiling involves Congress passing legislation to approve paying the debts currently due.  The US treasury will run out of money around October 17th.  The rating agencies of US treasury debt have not lowered the US’s grade at this time, as they feel the Treasury will pay the bill even if debt ceiling legislation doesn’t get passed. 

I hold the view of most Americans.  I’m really frustrated that we have a new crisis every couple months and no long term agreements in place.  It has a major effect on the markets.

The September employment report and many other economic reports are not being released with the government being shut down.  The FED will release their minutes from the last FOMC meeting on Wednesday at 2 pm Eastern.

It is a very uncertain time right now.  I always air on the side of caution.  I still think its safer to lock and interest rate float downs are available if rates drop a lot after a loan is locked.

Make it a great week!!                  

BEST VALUE OF THE WEEK:

30 Year Fixed at 4.25% with 0 points

10 Year Fixed at 3.125% with 0 points

5/1 ARM at 3.125% with 0 points

TODAY’S RATES:

30 year fixed:     4.25% – .9 points,     4.25% – 0 points,     4.5% – $0 costs

20 year fixed:   4% – .77 points,     4.125% – 0 points,     4.25%  – $0 costs

15 year fixed:   3.25% – .91 points,     3.5% – 0 points,     3.625% – $0 costs

10 year fixed:   3% – .59 points,     3.125% – 0 points,     3.5% – $0 costs

5/1 ARM:   2.75% – .88 points,     3.125% – 0 points,     3.5% – $0 costs

7/1 ARM:    3.25% – .89 points,     3.5% – 0 points,     3.75% – $0 costs

30 year fixed FHA:    3.75% – 0 points,      4% – $0 costs

15 year fixed FHA:    3.25% – .36 points,     3.375% – 0 points,     3.625% – $0 costs

30 year fixed VA:     3.875% – .2 points,    4% – 0 points,     4.125% – $0 costs

Today's Interest Rates - October 7th, 2013

Today’s Mortgage Interest Rates.  Current Mortgage Interest Rates and APRs for refinancing and purchasing in Arizona, California, and Colorado.  Arizona Home Loans, California Home Loans, Colorado Home Loans.  Arizona refinance, California refinance, Colorado refinance.  Scottsdale, Arizona Mortgage Banker in McCormick Ranch.  Mortgage Rate Sheets for fixed mortgages, ARM mortgages, Variable Mortgages, Interest Only Mortgages, HARP mortgages, HARP 2.0 mortgages, DU Refi Plus Mortgages, Freddie Mac Open Access Mortgages, Fannie Mae Home Path Mortgage, Freddie Mac Foreclosure Relief Mortgage, VA mortgages, VA Interest Rate Reduction Loans, FHA mortgages, FHA streamline refinance mortgages, Conforming mortgages, Conventional Mortgages, 100%  Financing Mortgage, High Balance Mortgages, Fannie Mae mortgages, Freddie Mac Mortgages, No appraisal refinance, 0 point mortgages, 0 closing cost mortgages, paying a point mortgages, Refinance mortgages, purchase mortgages, and Jumbo Mortgages.  October 7th interest rates, October 8th interest rates, October 9th interest rates, October 10th interest rates, October 11th interest rates, October 12 interest rates, October 13th interest rates, October 14th interest rates.

RATES REMAIN AT LOWEST LEVELS SINCE JUNE – WHAT EFFECT DOES GOV’T SHUTDOWN HAVE ON RATES?

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