Happy finance Friday (I just made this tagline up). Mortgage rates dropped this week to their lowest level since September with the average 30-year fixed rate coming in at 6.23% (vs. 6.42% from the prior week). I would not necessarily characterize this as a tumble but mortgage applications increased 25% week over week which is certainly meaningful. Apartment showing activity has also picked up!
The U.S. government hit its borrowing limit on Thursday (that limit, by the way, is currently $31.4 trillion). In a letter to congress, Treasury Secretary Janet Yellen stated that the Treasury Department started implementing “extraordinary measures” to keep paying the government bills. Congress continues to quibble over raising the borrowing limit and decreasing spending. Experts, including Yellen, are concerned that the standoff could increase the chance of a recession.