Weekly Economic Update

The shutdown continues, and in its wake another week of no major economic reports. 

Last week though CoreLogic reported a 33% drop in foreclosure inventory, which marks the 22nd consecutive month of foreclosure declines.

However, the big story is the gridlock in Washington over raising the debt ceiling. On October 17th, the federal government will reach its borrowing limit. If Congress and the White House can’t reach an agreement, the effects on the economy could be severe.

Bottom Line for Mortgages

Mortgage rates are holding steady with all the uncertainty. The minutes from the last Fed meeting were released last week, and it showed most board members except one want more evidence of economic growth before “tapering” their bond-buying program. 

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