Mortgage Rates After Government Shutdown On Home Loans

This BLOG On Mortgage Rates After Government Shutdown Was UPDATED And PUBLISHED On November 9th, 2013

What Will Mortgage Rates After Government Shutdown:

The government shutdown is finally over and business is back to normal.

  • The impact of interest rates after the government shutdown and the uncertainty of the debt ceiling has been favorable to mortgage rates
  • Mortgage Rates After Government Shutdown have dropped significantly from the recent all-time recent high
  • This has spiked the refinance and purchase markets
  • We expect that rates after the government shutdown will continue dipping until the debt ceiling stalemate in Washington is resolved at least until next February 7, 2014

In this article, we will discuss and cover Interest Rates After The Government Shutdown On Home Loans.

Mortgage-Backed Securities

Mortgage Rates After Government Shutdown

Mortgage-Backed Securities, also known as MBS, has spiked up 95 basis points last week.

  • Whenever Mortgage-Backed Securities increases in value, the effects of mortgage rates is that they drop in price

Mortgage-Backed Securities has increased another 0.125% again this past week which has dropped 30 year fixed mortgage rates to 4.0%.

Mortgage Rates After Government Shutdown On Government Loans

Government-sponsored mortgages such as FHA, VA, USDA, and Conventional mortgage loans are back to running at full capacity after the government shutdown.  Getting 4506 T transcripts from the IRS was a major impact on closing loans during the government shutdown but now everything is back on track.

Long Term Mortgage Rates After Government Shutdown

Financial experts predict that over the long term, mortgage rates will increase.

  • The Federal Reserve Board’s mission is to eventually reduce buying bonds. 
  • The Federal Reserve Board has been aggressively buying bonds to stimulate the economy.   
  • As our economy gains momentum and strength, the Federal Reserve Board will start tapering in bond buying which will increase mortgage rates.  
  • When will the Federal Reserve Board start tapering in buying bonds?  Nobody knows but can happen at any time. 

Any great economic news that can add fuel to the speed on the Federal Reserve Board will act.

Great Time To Refinance And Take Advantage Of Low Mortgage Rates After Government Shutdown

Is this a great time to refinance and take advantage of low mortgage rates after government closure

Decreasing mortgage rates opens up the opportunity for homeowners to consider refinancing their current home mortgage loans to get better rates.

  • Gustan Cho Associates has conventional loan programs with no mortgage insurance premiums required
  • Borrowers can be a candidate for a refinance conventional mortgage loan with no mortgage insurance premium
  • Borrowers only need 5% equity in their homes

This is a great way of getting rid of your FHA mortgage insurance premium if you currently have an FHA mortgage loan.

Apply Today And Get Pre-Approved

GCA Mortgage Group has no lender overlays on government and conventional loans. All of our pre-approvals close because mortgage underwriters will do a full credit underwrite as a TBD Mortgage Underwrite. All of our pre-approvals are signed off by our mortgage underwriters. Please contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at gcho@gustancho.com. The team at GCA Mortgage Group is available 7 days a week, evenings and weekends.

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