Daily Market Update 10/1/13

Rates held steady Tuesday as the partial government shutdown began.  In economic news, the Institute for Supply Management manufacturing index rose unexpectedly to 56.2, beating forecast.  Construction Spending data was due out this morning but will be delayed due to the shutdown.  The status of Friday's key Employment Report for September remains uncertain.  New and existing mortgage applications will continue to be processed, but certain documentation requirements, such as income re-verification through the IRS, could delay closings if the shutdown continues for several days.  Debt ceiling negotiations are potentially a much bigger issue, as a U.S. Government default on its debt would wreak havoc on the economy.  The debt limit is due to be reached in about two weeks.  Hopefully the two parties will come to their senses sometime before then.