Tuesday, October 8, 2013

The Gov Shutdown And FHA Mortgage Rates

The Federal Savings Bank has been asked about the impact the government shutdown will have on mortgage rates. In the face of a government shutdown. Interestingly the effect on mortgage rates seems to have been minimal, as rates have dropped again for the third consecutive week. This drop spells good news for consumers seeking to take advantage of what could become a home buyers marketing.

A comparison reveals the buyers advantage. According to Fannie Mae and Freddie Mac,  for the week ending on Oct. 3rd  interest rates for a 30-year fixed mortgage averaged 4.22 percent. Compare that to the previous week when fixed rates averaged of 4.32 percent.

While lower mortgage rates are good news for first-time home buyers and those looking for the best mortgage refinance rates the drop comes during a government shutdown which can cause a temporary economic downturn. Still this does not seem to be having a drastic impact on the housing market in the short term.