Rates Edge Higher, But Stay in a Competitive Range
Mortgage rates moved slightly higher this week, though they remain below recent peaks. Day-to-day volatility continues as markets respond to Federal Reserve policy signals and economic data.
Applications Dip, But Buyers Are Still Active
Mortgage applications slowed a bit last week, especially on the refinance side. On the purchase side, pending home sales actually ticked up, showing that buyers are still finding opportunities when the home and payment line up.
How the Government Shutdown Could Affect Mortgages
The potential government shutdown is creating new wrinkles in the housing market:
Loan Processing: FHA, VA, and USDA loans could experience slower processing since those agencies rely on federal staff. Conventional loans are not directly impacted.
Flood Insurance: If the National Flood Insurance Program (NFIP) lapses, it could delay purchases in flood zones.
Verification Services: IRS income verification and other federal data requests could slow underwriting.
Rates: Periods of uncertainty sometimes put downward pressure on mortgage rates, but they can also create volatility.
What This Means for Buyers and Homeowners
If you’re buying with FHA, VA, or USDA financing, allow a little extra time in case of government-related slowdowns.
For homes in flood zones, confirm early that flood insurance is available.
Stay flexible with rate locks — short-term volatility can create opportunities.
Final Thought
Even with a bit of uncertainty, the housing market is still moving — buyers are writing contracts, and motivated sellers are meeting the market. If you’re considering a purchase or refinance, I can help you understand what these changes mean for your situation.
🍂 And in the meantime, don’t forget to enjoy the cooler weather and fall colors while they last!
