Weekly Mortgage Rates Slightly Lower as Shutdown Sows Uncertainty

"The average rate on a 30-year fixed-rate mortgage fell two basis points to 6.33% APR in the week ending Oct. 2, according to rates provided to NerdWallet by Zillow. A basis point is one one-hundredth of a percentage point. The week's biggest news, of course, was Wednesday's government shutdown. This doesn't affect mortgage rates directly, but it will certainly affect the economy - and rates will reflect that. It also makes mortgage rates' future moves much more difficult to predict, as key economic indicators become unavailable."

"Would it reinforce data released Tuesday by the Bureau of Labor Statistics, which seemed to show a stable labor market? Would a firming labor market turn the Federal Reserve's focus to inflation, which doesn't appear to be slowing? We don't know, and it's hard to say when we will. The federal government shut down on Wednesday, and per the Department of Labor's contingency plan, the BLS will be closed until the government reopens."

The average 30-year fixed mortgage rate fell two basis points to 6.33% APR for the week ending Oct. 2. A basis point equals one one-hundredth of a percentage point. A government shutdown began Wednesday and will not directly change rates but will affect the broader economy and how rates move. Key government economic reports used by lenders and the Federal Reserve are being suspended. The Bureau of Labor Statistics closed under a contingency plan, delaying job reports and halting new data collection. Prolonged shutdowns could compromise future reports, including the Consumer Price Index, complicating economic assessment.

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