30 Year Fixed Mortgage Interest Rates Home Loans Housing Sector Affected by Government Shutdown

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The potential government shutdown has many Americans worried about a myriad of areas it might affect. President Obama and Congress will work today to come to terms to avoid a potential government shutdown. Details will post throughout the day regarding progress, or lack thereof. If the government shutdown does occur, an already fledgling recovery in the housing sector would be thrown off track dramatically. It is reported that the shutdown would negatively impact the home loan process and this would happen now, which is historically the prime home buying season during the calendar year. Many government HUD programs would be affected by the shutdown and mortgage rates overall are likely to climb higher if the shutdown occurs. Home loan borrowing costs already spiked higher this week and mortgage rates followed this week in a parallel fashion. According to “Best Execution” trendline tracking for fixed mortgage rates, trends are on the incline. The 30 year fixed rate mortgage moved higher to 5.125 percent. According to rate tracking based on an average survey of lenders, posted rates for the 30 year fixed rate mortgage hit 4.98 percent as of late afternoon last session. This was a .10 percent rise. Mortgage rates are trending in an upward direction and the potential government shutdown will apply additional negative pressure on the sector. Author: Stephen Johnson

30 Year Fixed Mortgage Interest Rates Home Loans Housing Sector Affected by Government Shutdown