Mortgage rates move slightly lower as government shutdown delays key data
Mortgage rates dropped slightly this week as financial markets remained largely calm amid the government shutdown.
The average 30-year mortgage rate was 6.3% this week through Wednesday, according to Freddie Mac data, from 6.34% a week earlier. Average 15-year mortgage rates were 5.53%, from 5.55%.
For the past month, mortgage rates have settled in a narrow range around 6.3%. There’s been little to spur big movements. The latest jobs report, which in recent months has sparked big moves in mortgage rates, was originally scheduled for release last Friday, but has been delayed due to the government shutdown. Markets have instead been relying on alternative data sources, like ADP’s payrolls report for private employers.
That data, released Oct. 1, showed that the US shed 32,000 jobs in September. The dismal numbers briefly sent the 10-year Treasury yield, which mortgage rates closely track, lower, but it’s since rebounded.
“With the government shutdown delaying major economic data releases, markets are relying on alternative data sources, which may have contributed to the narrow range for mortgage rate movements over the last week,” Kara Ng, senior economist at Zillow, said in a statement.
As rates held steady, refinancing and purchase activity slowed. Mortgage applications for refinancing dropped 8% through Friday from a week earlier, while purchase applications declined 1%, according to Mortgage Bankers Association data.
“For prospective homebuyers, the current holding pattern in rates offers stability, but broader uncertainty may weigh on consumer sentiment,” Realtor.com senior economist Anthony Smith said in a statement.
Claire Boston is a Senior Reporter for Yahoo Finance covering housing, mortgages, and home insurance.
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