The average rate for a 30-year fixed mortgage climbed to 4.23 percent from 4.22 percent, Freddie Mac said in a statement today. The average 15-year rate increased to 3.31 percent from 3.29 percent, according to the McLean, Va.-based company. The shutdown has lengthened the wait for some borrowers seeking mortgages backed by the Federal Housing Administration and Department of Agriculture. It also has postponed the release of economic-data reports, including the Department of Labor‚Äôs monthly employment figures, which Federal Reserve officials use to determine whether to continue stimulus efforts.
‚ÄúWe‚Äôre working blind in a very murky environment right now,‚ÄĚ said Keith Gumbinger, vice president of HSH.com, a mortgage-data firm in Riverdale, New Jersey, in a telephone interview yesterday. ‚ÄúThe longer this drag persists from the government shutdown, the less likely it is that the Fed is going to make a move at the end of the month.‚ÄĚ
Federal Reserve Chairman Ben S. Bernanke said last month that more signs of lasting improvement in the economy are needed before the central bank cuts its $85 billion in monthly bond purchases. Minutes of the Federal Open Market Committee‚Äôs Sept. 17-18 meeting, released yesterday, show most policy makers indicated that budget cuts and an increase in borrowing costs were a drag on economic growth. The average rate for a 30-year fixed loan jumped to a two-year high of 4.58 percent in August from a near-record low of 3.35 percent in early May.
If the U.S. doesn‚Äôt raise the debt limit by Oct. 17, the country‚Äôs borrowing authority would lapse. Treasury yields and mortgage rates would rise if the government were to run out of money, Diggle said.
Author:Billy Schneider Phone: 623-249-9705 Dated: October 15th 2013 Views: 433 About Billy: ...
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