Economic News
If you are unable to view the message below, please click here.
Kenton Becker
Loan Officer
Office: (206) 423-2552
NMLS #123961 ,
Washington #MLO-123961

Events Last Week:

Philly Fed Down
Jobless Claims Fell
Empire State Lower

Events This Week:

Mon 10/21
Existing Sales

Tue 10/22

Thur 10/24
Jobless Claims

Fri 10/25




landhome landhome

Congress Reaches Deal

Congress approved a deal on Wednesday to raise the debt ceiling and to fund the government for a few months. The news lifted both stocks and bonds. The S&P 500 index reached an all-time high. Mortgage rates also improved nicely after the deal was reported.

The deal extends the government's borrowing authority until February 7, removing the risk of default. The deal also funds the government until January 15, ending the shutdown. It provides more time for negotiations, but it does not bring the two sides any closer to reaching a long-term agreement on the major fiscal issues. For mortgage markets, even the slight risk of default had been enough to prevent some investors from purchasing government bonds, including mortgage-backed securities (MBS). After the deal, these investors resumed their purchases of MBS, which lifted MBS prices and lowered mortgage rates.

Mortgage rates benefited from the agreement for another reason. Investors now think that the Fed will wait longer to begin to taper its bond purchase program. Fed officials have expressed reluctance to reduce monetary stimulus while future fiscal policy remains uncertain. If history is any indication, the debate in Congress over a longer-term budget and deficit reduction package likely will continue right to the extended dates. In addition, before tapering the Fed will want to see how much the government shutdown slowed the economy. The flow of economic data produced by the government will resume this week, but it will take some time to sort out the impact of the shutdown from the underlying strength of the economy.

Also Notable:
  • The NAHB Home Builders confidence index fell slightly from multi-year highs
  • The Fed's Beige Book reported "modest to moderate" economic growth
  • The Empire State index declined to the lowest level since May
  • The S&P 500 stock index rose to a record high


Average 30 yr fixed rate:
Last week: +0.03%
This week: -0.10%
Stocks (weekly):
Dow: 15,350 +100
NASDAQ: 3,900 +100

This Week

The end of the government shutdown means that the government will produce its economic reports again. The important September Employment report, originally scheduled for October 4, will be released on Tuesday. The other postponed reports, including CPI and Retail Sales, will be released in coming weeks. The rest of the schedule for this week includes Existing Home Sales on Monday, Jobless Claims on Thursday, and Consumer Sentiment on Friday. New Home Sales was originally scheduled for Thursday, but the report may be delayed.

©2013 MBSQuoteline

Equal Housing Opportunity Lender. Rates, Program, Fees, and Guidelines are subject to change without notice. Not a commitment to lend. Land Home only conducts business in states we are approved to. Land Home Financial Services, 22525 SE 64th Place, Suite 220, Issaquah, WA 98027. Washington Consumer Loan License #CL-89331. NMLS ID # 89331. Kenton Becker Licenses: NMLS #123961; Washington #MLO-123961. You are receiving this communication because of an existing and/or past business relationship, or because you have consented to receive communications from Land Home. 10-21-13
301 116th Ave SE Suite 200, Bellevue, Washington, 98004
This is a 1x1 transparent image tracking traffic