The government shutdown continues to dominate headlines in the U.S. but the actual market reaction has been fairly muted so far today.
There will be a vote at noon on whether or not to reopen the government with funding for three more weeks. There is definitely the possibility of a mortgage rate adjustment after the results of that vote are in.
Read on for more details.
Where are mortgage rates going?
Government shutdown still center stage
Unless you’ve been under a rock for the past 72 hours you’re no doubt aware that the U.S. government went into a shutdown after Republican and Democratic lawmakers failed to agree on funding by midnight last Friday.
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The hectic scene down in Washington, D.C. continues this morning as a vote at noon is now the key focus. If the vote passes, the government will reopen and have funding for three more weeks.
The outcome is still clouded with uncertainty as a few crucial issues remain unresolved between the two parties. At any rate, the markets aren’t really showing much concern at the moment with all the major U.S. indexes trading higher.
If we take a look at the yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going), we can see that it’s just about two basis points lower from where it started the day.
Mortgage rates typically move in the same direction as the 10-year yield, so rates are flat to slightly lower right now.
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Rate/Float Recommendation
Lock now while rates are low
Mortgage rates moved higher last week. There’s a lot up in the air right now with the government shutdown so it’s hard to say where mortgage rates will go this week; however, we do still expect that current mortgage rates will rise in the long-term.
Given this expectation, we believe the smart decision for anyone looking to buy a home or refinance is to lock in a rate sooner rather than later.
Click here to head to our Mortgage Builder and figure out how much you could save.
Today’s economic data:
Chicago Fed National Activity Index
The Chicago Fed National Activity Index came in at a 0.27 for December, which is just a touch higher than the 0.27 that analysts had expected. The 3 month moving average is now at 0.42. It’s a mixed report that isn’t doing anything for investors today.
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Notable events this week:
Monday:
- Chicago Fed National Activity Index
Tuesday:
- Richmond Fed Manufacturing Index
- Fedspeak
Wednesday:
- FHFA House Price Index
- PMI Composite Flash
- Existing Home Sales
- EIA Petroleum Status Report
Thursday:
- International Trade in Goods
- Jobless Claims
- New Home Sales
- Kansas City Fed Manufacturing Index
Friday:
- Durable Goods Orders
- GDP
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from Total Mortgage Blog http://ift.tt/2DxHdYN
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