Government Shutdown Lowers Mortgage Rates

    government shut down

    Politics asides, there is one consequence of the government shut down that will positively affect current home buyers —

    Freddie Mac has reported that interest rates have fallen for the third straight week. Averages are lower than they have been in the last four months.

    Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 3:

    • 30-year fixed-rate mortgages: averaged 4.22 percent, with an average 0.7 point, dropping from last week’s 4.32 percent average. Last year at this time, 30-year rates averaged 3.36 percent. 
    • 15-year fixed-rate mortgages: averaged 3.29 percent, with an average 0.7 point, dropping from last week’s 3.37 percent average. Last year at this time, 15-year rates averaged 2.69 percent. 
    • 5-year hybrid adjustable-rate mortgages: averaged 3.03 percent, with an average 0.6 point, dropping from last week’s 3.07 percent average. Last year at this time, 5-year ARMs averaged 2.72 percent. 
    • 1-year ARMs: averaged 2.63 percent, with an average 0.4 point, holding the same as last week. A year ago at this time, 1-year ARMs averaged 2.57 percent.

    Bob Van Gilder, a mortgage broker at Finance One Mortgage, offers this tip to those home buyers who are one the fence, worried that the shutdown will hold up everything: “There may be some bumps in the road as the I.R.S. and the Social Security Administration have limited services, which will affect the mortgage process. But if you are being offered a rate that is attractive to you – take it. You can’t lose by being able to sleep at night.”

     

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