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Still, there could be short-term bumps. Mortgage applications submitted by potential home buyers fell 5 percent last week. Applications for mortgages insured by the Federal Housing Administration and other government agencies dropped to their lowest level since December 2007, when the Great Recession officially began, according to the Mortgage Bankers Association. AUTO SALES: Some Americans postponed or canceled auto sales, according to J.D. Power and Associates. Sales fell to an annual rate of 15.3 million in the second week of the shutdown, from 15.6 million in the first week. Industry analysts blamed the budget battle in Washington and its effect on consumer confidence. Before October, auto sales had been running at an annual rate of 15.5 million this year, up from last year's 14.4 million. Auto sales have been a bright spot in the U.S. economy since the recession officially ended in June 2009. HIGHER BORROWING COSTS: The uncertainty surrounding the government's borrowing limit pushed up interest rates on one-month, three-month and six-month Treasury bills. That's because investors grew nervous that the Treasury Department would miss an interest or principal payment on the debt. The higher rates will push up U.S. borrowing costs $114 million this year, Handler of IHS estimates.
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