We are in the midst of a government shutdown for the first time in seventeen years, as Congress was unable to put aside party rhetoric to pass a stopgap spending bill.
The shutdown should continue to help prop rates up for a little while longer, as the stock market wrestles with adjusting it's course of action.
MBS improved 16 bps, meaning that rates should remain unchanged, but there is a small improvement in rebate pricing.
Construction Spending was not released due to the shutdown. Economic news releases are affected during the shutdown, as the government departments that would normally provide them are non essential and therefore closed.
MBS still clearly had very strong support, but was unable to gain any further improvement on the news of the shutdown.
Floating an interest rate may be a risk willing to take as long as you are working closely with a Mortgage Professional and heeding his or her advice. Be ready to act quickly on the news that the parties in D.C. may come or have come to a compromise and ended the government shutdown. This could turn quickly, so expect increased volatility.
- Michael Corboy
www.specialtyfinancialmtg.com
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