Premier Lending Weekly Mortgage Market Update October 11, 2013

Posted by on Friday, October 11th, 2013 at 12:22pm.

Rates Flat as Government Shutdown Continues

Mortgage interest rates were mostly flat again this past week as the government shutdown continues.  In addition to the shutdown, the Treasury has indicated that it will run out of money next Thursday and be unable to pay interest on its debt.  The Treasury, though, may be able to move payments around and continue to pay interest on its debt through the end of October.  In light of the government shutdown and debt ceiling negotiations it is unlikely that the Federal Reserve will taper its Treasury and Mortgage Backed Security bond purchases this year. 
Most of the economic reports for the week were postponed due to the shutdown. The University of Michigan Consumer Sentiment Index was reported at 75.2, its lowest level since the beginning of the year.  The IMF lowered its global economic outlook again for 2013 to 2.9%. 
Also of note;
** The Treasury auctioned $64 billion of 3 Year Notes, 10 Year Notes, and 30 Year Bonds which were met with mixed demand.   
** President Obama nominated Janet Yellen to be the next Fed Chair.  She is thought to be a stronger proponent of quantitative easing than Bernanke. 

Wall Street Commentary

The Dow Jones Industrial Average closed today at 15,237.11 - up about 164 points on the week.  The crude oil spot price is currently at $101.82 per barrel, down almost $2 per barrel on the week.  The Dollar weakened versus the Euro and strengthened versus the Yen on the week.

Next Week

Next week look toward Wednesday’s Consumer Price Index (CPI) and Thursday’s Housing Starts, Jobless Claims, Industrial Production, and Philadelphia Fed Survey as potential market moving events.  Banks are closed Monday for Columbus Day.

Rates

Currently, a Conventional 30 year fixed rate is hovering in the range of 4.375 % with no points.

 ** Mortgage rates are subject to daily market fluctuations and can change without notice.  Mortgage rates are also effected by down payment, occupancy, loan amount, credit score, lock period  and property type. 

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