Market commentary

This morning, bond prices are a bit lower, pushing the yield on the 10 year note to 3.59%, its highest yield since February. Regarding the economy, there are two major stories today – oil and the budget showdown. Oil jumped to over $110 per barrel on Thursday and is nearing $112 per barrel this morning, which places oil at its highest level since September 2008 and 32% above its one-year average. In Washington, the budget stalemate continues with multiple trips to the White House by Congressional leaders seeming to narrow gaps but not bridge it. This morning it remains unclear whether a deal will be reached between House Republicans, Senate Democrats, and the White House. Lenders are busy researching and publishing information on how a government shut down will affect certain aspects of the mortgage business. The processing of 4506-Ts, the ability to insure FHA loans, and obtaining new commitments for USDA Rural housing are among the services that will be impacted. According to Politico, past government shutdowns (there have been 18 since 1977) have produced more news and drama than actual market and economic impact.