Our elected officials in Washington finally came together this week and collectively decided to kick the can down the road. While we thankfully did get our federal government reopened, we are likely to see this drama again at the beginning of next year. Mortgage rates did move downward after the government reopened, but weve entered another interesting period of time for the mortgage market. Over the next few weeks and months, it is possible that rates may move sideways or even trend downward. We have a situation where multiple, delayed economic reports will be released in the next few weeks. However, we may see some distorted data due to the backlog of data, the rush to catch up, and the effects of the shutdown. As such, traders may be a bit suspect, unless the majority of data is trending on the exact direction. Additionally, the Fed seems to have made the right call on not tapering, as there will be some impact from the shutdown and the next showdown. Toss in an upcoming change in the Feds leadership, and we may see uncertainly playing out for some time.
Posted on: Mon, 21 Oct 2013 14:42:23 +0000
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