After the Shutdown What’s in Store for Housing and Home Loan Rates?

The government shutdown has come to an end, but how does the House’s last minute deal and the post-shutdown environment impact mortgage rates?

With the debt ceiling stalemate in Washington resolved at least until February 7, 2014, rates could dip in the short term. Home builders stalled by the government shutdown will resume confidence and government-affiliated mortgages such as FHA, VA, USDA and FEMA loans will continue running smoothly.

But over the long term, mortgage rates will rise…

The Federal Reserve is committed to “taper,” or reduce its recent purchases of bond buying, which it had started doing to stimulate the economy. As the economy strengthens, tapering will begin. When? Nobody knows for sure, but when it does, rates will rise–and possibly faster than consumers will be able to anticipate.

If you or anyone you know has questions related to the shutdown’s impact on home loan rates, or hasn’t yet refinanced their Adjustable Rate Mortgage taking advantage of today’s historic low fixed mortgage rates, please call or email me today. I may be able to help and I’m always happy to answer questions!  

Priscilla Land

Senior Loan Originator, NMLS #218890

Prestige Mortgage Corporation

130 N La Grange Road, Suite 101, La Grange, IL 60525

P: 708-579-3333 F: 708-579-3509 C: 708-566-0661

priscilla@prestige-mortgage.com

www.prestigepl.com

Se habla español

Equal Housing Lender| Illinois Residential Mortgage Licensee| NMLS 137686