Economic News…for this week can be summed up in one word…Delayed”. Reports on Construction Spending, Factory Orders and the Employment Situation were not released due to the partial government shutdown. Up to this point lending has not been dramatically affected but if the impasse continues problems could arise. Social security number verification as well as the ability to pull tax transcripts (4506) could prove to be problems for mortgage lending down the road. It will be very important over the next few weeks to work closely with your mortgage professional to set appropriate expectations and avoid pitfalls. Another item to pay close attention to over the next two weeks is the debate over the debt ceiling increase. This could also add additional volatility to both the stock and bond markets.
Mortgage Markets…Interest rates moved lower again this week. The 10 Year Note closed trading flat at 2.650% versus last week’s closing yield of 2.631%.
Next Week’s Market Moving Reports…Tuesday: International Trade Wednesday: Minutes from the Federal Open Market Committee Thursday: Jobless Claims Friday: Producer Price Index, Retail Sales, Consumer Sentiment
While I do not originate mortgages, I make it a habit to keep abreast of market & home loan conditions. If you are thinking of purchasing a home the first step is to meet with a mortgage professional. I will gladly provide several top-notch Bay Area advisers for your review if you are in need of a referral.
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