Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac. "With the onset of the federal government shutdown and declining consumer confidence, fixed mortgage rates fell for the third consecutive week. Consumer sentiment fell for the second month in a row in September to its lowest reading since April, according to the University of Michigan. Moreover, a recent Bloomberg survey of professional forecasters suggests that a partial federal shutdown lasting one week would shave 0.1 percentage points off of GDP growth in the fourth quarter and even more if the shutdown lasts longer."
Expectations
This week will be relatively quiet if the government shutdown is not resolved. Most of the economic reports scheduled for this week will be postponed, including the Retail Sales and Producer Price index originally schedule to come out on Friday. Investors will continue to follow the budget and debt ceiling discussions. The Minutes from the September 18 Fed Meeting will still be released on Wednesday and will provide additional insight into the debate between the Fed officials. On Tuesday, Wednesday, and Thursday there will be also be Treasury auctions
Guidance
Rates are still at low levels. Now is the best time to meet to discuss a mortgage solution to meet your financial goals.
