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Threat of government shutdown helps mortgage rates remain low

Davido says he is sorry after he was called out for body-shaming his critic

Nigerian singer, Davido has reacted after he was called out for seemingly body-shaming a female critic who called him out over his political affiliations.

The Lady came out openly to lay heavy allegations on Davido, that he sold his soul to win votes for the political parties his supporting, but Davido was very quick to give her a bit of his anger, calling her all sort of names. (Read Here)

This action was largely condemned by many, who accused him of body shaming her.

Taking to his Twitter page earlier today, Davido addressed the allegations in a lengthy post. He revealed  he knows the lady personally and she could come directly to him, but rather went to accuse him online, this action he claimed hurt him so bad.

See what he wrote below;

Read Also: 

Are you having withdrawals from the ‘round the clock media coverage of the federal government shutdown?  Don’t worry, without a fresh funding bill the government will shut down this Friday at midnight.

Or will it?

Agreement in Principle

According to multiple reports republicans and democrats have reached an agreement to fund the government past this Friday.  Assuming the bill is passed and a shutdown is avoided I would expect the stock market to rally (it is up 200 points this morning) and interest rates to increase modestly.

Mortgage Rates

In the meantime, home loan rates remain at 9-month lows and there is plenty of uncertainty to help keep them low.  The US and China continue seemingly endless trade talks.  If and when there is a trade deal it could spark a stock market rally and hurt mortgage rates.

As I wrote about last week uncertainty about Brexit is also helping US mortgage rates remain low.

On tap this week

Tomorrow the Labor Department will release the latest Consumer Price Index (CPI).  Inflation is the primary driver of mortgage rates because it reduces the purchasing power of dollars repaid to a lender in the future.  Higher inflation results in higher home loan rates and vice versa.

I’ll also be watching the Producer Price Index which is released on Thursday and Consumer Sentiment on Friday.

Outlook

Mortgage rates remain in a long-term downward trend which I highlighted in last week’s update (see HERE).  I will maintain a floating position but am concerned that rates may reverse higher if a government funding deal is reached.

Current Outlook: cautiously floatingShare This Post

 Tags: government shutdown and mortgage rates, home loan rates portland, portland mortgage expert, Portland mortgage rates

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Mortgage Trust, Inc. This is for informational purposes only. This is not a commitment to lend.

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