We’re still waiting for Democrats and Republicans to come to an agreement to extend the debt ceiling.
So far, the markets are not panicking. There’s been no explosion in the interest rates paid out by bonds.
Mortgage interest rates held steady over the weekend.
Still, the longer we have to wait for a deal, the more mortgage interest rates are expected to rise.
David Costa writes: Mortgage rates are heading meaningfully higher today after a weekend in which the political parties in Washington made no progress towards a debt ceiling increase and spending reduction plan. Fear is a major mover of the investment markets and today both stock and debt (bond) markets appear to be under serious downward pressure today. Home purchasers or refinancers, whose mortgage interest rates depend on the movement within the mortgage-backed securities (mortgage bond) market, should strongly consider locking-in their rates at current levels.