USDA Loans Face Delays Amid Shutdowns; Mortgage Rates Set to Drop in October
Mortgage shoppers in the US are facing potential delays in USDA loans due to ongoing government shutdowns. Meanwhile, mortgage rates are expected to decrease in October, offering some relief to borrowers.
The US Department of Agriculture (USDA) handles rural housing loans, which are essential for many homebuyers in less densely populated areas. During government shutdowns, these services may be disrupted, leading to processing delays for applicants.
In more positive news, mortgage rates are likely to fall in October. Danielle Hale, an economist at Realtor.com, had previously suggested that rates could decrease due to a slowdown in job creation. This prediction was echoed by the Federal Reserve, which cut the federal funds rate in September. The Mortgage Bankers Association and Fannie Mae also anticipate a slight decrease in rates in the fourth quarter. Investor confidence in further Fed rate cuts is expected to drive this trend.
While mortgage shoppers may face temporary setbacks due to government shutdowns, the overall outlook for mortgage rates remains positive. With rates expected to decrease in the coming months, now may be an opportune time for homebuyers to secure more favorable loan terms.
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