Newport Beach, CA -- (SBWIRE) -- 10/17/2013 -- Today's Mortgage rates go into midweek unchanged yet again, with all best execution rates holding steady for now in the absence of government provided data that won’t be forthcoming until after the shutdown ends and things resume as normal once again.
There is a danger in assuming refinance loan rates will continue to be flat like this for the duration of the shutdown, however--the debt ceiling deadline has the power to push rates depending on the outcome this week. Will the deadline pass without any action to fix the problem? Could America really default over a lack of progress on the debt ceiling?
Many doubt it, but in the current partisan bickering, there’s no way to tell what the outcome might actually be. But if the deadline passes and there’s no resolution, keep your eye on the markets and watch the fireworks--they could definitely happen. Remember how reactionary the markets were over the previous Fed announcement about Quantitative Easing?
In the days leading up to it, any economic report that led investors to believe QE might be tapered sooner rather than later (something we’ve all known was going to happen eventually), va loan rates trended higher. The debt ceiling could be a version of that sort of knee-jerk reaction if conditions are right.
For now, rates are low and not moving in any direction save for a few lenders who might reprice higher or lower depending on conditions. But the debt ceiling problem is a major spoiler, especially in a time where no market moving data seems to be forthcoming from any source. That may be a slight exaggeration, but for now, all eyes seem to be on the government shutdown.
Some believe that when the government reopens for business, the resulting flood of economic data could force sharp, sudden change in the mortgage rates--that’s something to keep in mind if you’re weighing your options right now--there’s no way to tell which direction that sharp sudden movement might take.
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