What will happen with mortgages in light of the Government shutdown?
The stock market suffered Monday as it anticipated the government shutdown. Then what the market feared, actually happened, and the result, the market improved as of Tuesday morning, mortgage interest rates had remained mostly unchanged.
So what actually happened? The government furloughed certain federal agencies and contracted organizations. What does this mean? Simply put, the government slowed down, and told a percentage of employees not to come to work today.
We’ve had a few people ask us what does the government shutdown mean for closing a loan. To keep it short and to the point, the answer is that like interest rates, the loan process continues mostly unchanged, even for VA and other government loans. At it’s worst, you may notice some minor delays when requesting documents from some government organizations.
When we take a step back and examine this government shutdown, and its effects, you should see things pretty much continue as normal. That being the case, we hope you don’t hesitate to begin or continue your pursuit of a home purchase or refinance. Over the past couple of weeks, we’ve seen a fairly steady reduction in mortgage interest rates. This makes it a perfect time to buy or refinance.