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.
End of Shutdown
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.
Crisis Averted...For Now