Mortgage Rates After Government Shutdown

Mortgage Rates After Government Shutdown

This BLOG On Mortgage Rates After Government Shutdown Was UPDATED On October 29th, 2017

What Will Mortgage Rates After Government Shutdown:

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

  • The impact of mortgage rates after 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 and this has spiked the refinance and purchase markets. 
  • We expect that mortgage rates after government shutdown will continue dipping until the debt ceiling stalemate in Washington is resolved at least until next February 7, 2014.

Mortgage Backed Securities

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 mortgage products such as FHA insured mortgage loans, VA mortgage loans, USDA mortgage loans, and FEMA mortgage loans are back to running at full capacity after the government shutdown.  Getting 4506 T transcripts from the IRS was a major impact in 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 it 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 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

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

  • The Gustan Cho Team at USA Mortgage has conventional mortgage loan programs with no mortgage insurance premiums required
  • Mortgage Borrowers can be a candidate for a refinance conventional mortgage loan with no mortgage insurance premium.
  • Borrowers only need 5% equity in their home. 
  • This is a great way of getting rid of your FHA mortgage insurance premium if you currently have a FHA mortgage loan.

Apply Today And Get Pre-Approved

The Gustan Cho Team at USA Mortgage 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 The Gustan Cho Team at Loan Cabin at 1-800-900-8569 or text us at 262-716-8151 or email us at We are available 7 days a week, evenings and weekends.

Gustan Cho NMLS ID # 873293

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