Despite all the hubbub about the approaching Aug. 2nd deadline to raise the federal government debt ceiling, financial markets have stayed stable.
Failure to raise the debt ceiling was expected to raise mortgage interest rates by nearly a percentage point.
So far that is not happening.
All the talk about raising the debt ceiling reminds me of all the talk about Carmaggedon in Los Angeles when the 405 was closed for a weekend. It turned out to be nothing.
The biggest dramas in your life, if you live in the Western world, are most likely to come from your own personal life, from your own decisions, from your own battles with your demons, and not from political conflict.
The WSJ reports: Mortgage rates in the U.S. were again little changed over the past week, as readings on the U.S. economy continued to show mixed signals, according to Freddie Mac’s weekly survey of mortgage rates.
“Macroeconomic data released this week were a mixed bag,” said Freddie Mac Chief Economist Frank Nothaft. “On the positive side, the index of leading indicators in June rose for the second consecutive month, beating the market consensus forecast. Partly offsetting this, orders for durable goods were weaker than market expectations for the same month.”
THERE ARE SIGNS THAT THE DEBT WRANGLING IS PUSHING MORTGAGE INTEREST RATES UP.
Mortgage rates for 30-year U.S. loans climbed to the highest level in three weeks amid concern that lawmakers will fail to agree on an increase in the nation’s debt ceiling.
The average rate for a 30-year fixed loan rose to 4.55 percent in the week ended today from 4.52 percent, according to Freddie Mac. The average 15-year rate was unchanged at 3.66 percent, the McLean, Virginia-based mortgage-finance company said in a statement.