Here is just a friendly update on what is happening in the world of Real Estate. Contact Bill Yarnall Realty at 727-209-7994 or check out my website at http://wyarnall.kwrealty.com.
What Happened Last Week??
The government shutdown and corresponding temporary drag on our economy was responsible for some of the best pricing that you have seen in several months. However, that was due to trader's sentiment that it would be short lived.
What’s Happening This Week?
What’s Happening This Week?
Now, we are entering into that "brackish" period where the concern is tilting towards a prolonged shutdown and hitting our debt ceiling without a real solution. If that would ever to occur then our debt would not be as attractive to foreign investors and cause our rates to rise. Think of it this way....the U.S. would go from an 800 credit score down to a 580. Would you lend more money (ie buying Treasuries) to a country that is in default? That is like giving a mortgage to someone that is default of their auto loan, student loan and currently in foreclosure.
Bottom Line?
Bottom Line?
As a result, MBS and Treasuries are becoming less attractive and are losing some pricing. So just be prepared...there is a point where this negative news out of Washington is no longer beneficial to your rates. We are not there yet...but it is only 9 days away.
**most lenders are finding a work around to the government shutdown to make sure your deals close on time. If you have any questions or need any help with a deal please don’t hesitate to email or call.
Information courtesy of Craig Inglis | Senior Loan Officer
VanDyk Mortgage Corporation | NMLS: 307619 State: LO 11567
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