Freddie Mac is reporting a dip in mortgage rates, now at 4.22% from the previous 4.32% figure, making this the lowest value since June 2013.  However, a lower rate means little if loan applications cannot be filed because of the nationwide government shutdown.

The government shutdown affects loan issuance since confirming the identities and checking backgrounds of borrowers may take longer.  Some loans require tax transcripts and Social Security checks before they can be initiated.  FHA home loans will also see stalls and diminished use.  Borrowers have concerns regarding whether or not they will be able to be closer to owning a new home or refinancing a current residence. Borrowers are being encouraged to discuss with lenders what the delays could mean for them, and to also discuss any sort of extended repayment plan for the life of the loan.

The longer this shutdown persists, the worse it will be for borrowers seeking services and lenders trying to catch up with their approval processes.

Source: http://www.latimes.com/business/money/la-fi-mo-freddie-mac-mortgage-rates-20131003,0,7965467.story?track=rss