49°
Clear
WED
 57°
 37°
THU
 57°
 35°
FRI
 58°
 33°
SAT
 55°
 38°
SUN
 57°
 36°

The Shutdown's Aftermath Housing and Construction Take Hits While Investors Remain Nervous

<a href="http://www.sonomanews.com/wp-content/uploads/2013/09/gary_umholtz.jpg"><img class="alignnone size-full wp-image-884" alt="Gary Umholtz" src="http://www.sonomanews.com/wp-content/uploads/2013/09/gary_umholtz.jpg" width="205" height="307" /></a>As the Government Shutdown stretched into mid-October, a last minute deal by House Republicans and Democrats was reached just before the debt ceiling deadline on October 17.

<b>End of Shutdown</b>

The deal ended the shutdown and equities markets rallied on the news. Home loan rates, which are tied to Mortgage bonds, did move a bit higher during the shutdown, but then improved just after the shutdown and fiscal issues were resolved.

Rates will continue on a volatile track until the economy stabilizes after the shutdown's specter lifts, a paralyzing threat which could have stalled or prevented many government-sponsored mortgage programs, such as Federal Housing Administration (FHA) loans, Veterans Affairs (VA) loans, and USDA loans for homes in rural areas.

<b>Crisis Averted...For Now</b>


© The Press Democrat |  Terms of Service |  Privacy Policy |  Jobs With Us |  RSS |  Advertising |  Sonoma Media Investments |  Place an Ad
Switch to our Mobile View