Rates Flat as Government Shutdown Enters its Fourth Day
Mortgage interest rates were mostly flat week over week as the government shutdown enters its fourth day. It appears that there is not much progress in negotiations between the President and Congress. It is estimated that the U.S. loses $300 million per day in economic output as a result of the shutdown. A few economic reports have been delayed due to the shutdown including today’s employment report for September. Of the economic reports that were released the data was mixed.
Economic reports stronger than expected included the September Chicago Purchasing Managers Index, the September ISM Manufacturing Index, and weekly jobless claims. The ISM Manufacturing Index reached its highest level since April 2011.
Economic data weaker than expected included the September ADP Private Jobs report and the September ISM Services Sector Index.
Also of note, the Treasury will run out of money mid-October unless the debt ceiling is increased. If the debt ceiling is not increased the U.S. will likely default on its debt.
Wall Street Commentary
The Dow Jones Industrial Average is currently at 15,012, down almost 250 points on the week. The crude oil spot price is currently at $104.13 per barrel, up slightly on the week. The Dollar has weakened versus the Yen and Euro on the week.
Next week look toward Tuesday’s International Trade, Wednesday’s FOMC Minutes, Thursday’s Jobless Claims, and Friday’s Producer Price Index and Retail Sales reports as potential market moving events. Also, hopefully the September employment report, August Construction Spending, and August Factory Orders will be released.
Currently, a Conventional 30 year fixed rate is hovering in the range of 4.25 % 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.