There was a lot of speculation about what would happen to mortgage rates and home prices in the midst of a government shutdown, and now that we are in the middle of one, it's easy to see what has changed - and it's not too much.
Mortgage Rates have dropped 0.25% to 0.375%, which could save homebuyers about $100 per month on an average home purchase. These declining rates can be attributed to a decline in both consumer and investor confidence in all U.S. markets. Even with lower rates, mortgage companies are having a slightly more difficult time funding loans, due to uncertainty in the secondary market (where mortgage companies sell newly funded loans to investors).
Home Prices have, as of yet, remained stable during the shutdown. Of course, if the shutdown lasts too long, all bets are off, and we could see drastic changes in home values and everything to do with real estate.
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Dennis Boyle, REALTOR
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