Nothing good ever comes out of a government shutdown, except for lower mortgage rates. Follow my logic here. The 'Tea Party' folks in Congress hold to their principles and the GOP doesn't come to terms with Democrats. The government shuts down Friday night and both sides hold their positions, refusing to compromise. This thing drags on and local economies that depend on tourist dollars tied to national parks begin to feel the pain. Now here's the biggie: the stock market tanks and investors flee for the safety of U.S. Treasury bonds. The price of bonds spike and rates fall — including mortgage rates. Sounds like a rosy scenario, for homebuyers at least. Of course, if a homebuyer needs a Federal Housing Administration loan, that won't happen. The FHA is deemed "non-essential" and will close for business once government funding stops. Also, federal workers hoping to buy a home will be out of luck — because they are out of work.
Government Shutdown Could Lead to Lower Mortgage Rates
APR 7, 2011 11:41am ET
You must be registered to post a comment. Click here to register.
Already registered? Log in here
- Capsilon Survey Reveals 70 Percent of Lenders Expect Mortgage Loan Production Costs to Rise in 2017
- Simplifiles Nationwide E-recording Network Achieves Record 1,500 Participating Counties
- Simplifile Reports Continued Expansion of E-Recording Infrastructure, Electronic Document Submission in Q3 2016
- First American Mortgage Solutions Invests In Helping Lenders And Servicers Achieve Sustainable Quality And Growth
- First American Mortgage Solutions launches Vendor Management Suite to aid with Lender compliance requirement