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The Government Shutdown’s Possible Effect on Real Estate

  • The government shutdown continued for a third day on Monday after Congress’s failed attempts to pass a spending deal that would fund the government through mid-February.
  • During a shutdown, the Internal Revenue Service (IRS), Social Security Administration and the Department of Housing and Urban Development (HUD) furlough large swaths of workers, significantly delaying mortgage approval until work resumes.
  • Banks and private lenders will operate as usual, housing experts told Inman News. But the mortgage applications they approve or deny include tax records and financials requiring certification. Fannie Mae and Freddie Mac, despite being government-sponsored enterprises, are not government agencies — and therefore are not affected.
  • NAR President Elizabeth Mendenhall emphasized that a long-term shutdown could pose larger problems for the housing market and called on senators to vote in favor of a budget extension Friday.
  • “The government shutdown will have an impact on real estate transactions should it continue for an extended period of time,” said Mendenhall in a prepared statement. “The National Association urges Congress to come together and reach an agreement to keep the government open and avoid any negative effects on our military, federal employees, housing markets and the economy.”
  • The overall impact of a shutdown on the economy or housing market, however, will likely be negligible, since mortgage approval would resume eventually, said NAR economists.
  • Read more of this Inman News story HERE.
  • If you’re not already enjoying the FREE Inman Select subscription that comes with your HAR membership, sign up HERE today!
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HAR Communications Dept.

1 comment

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  • Worse than my profession being compromised…is the health and welfare of our Soldiers and their families, our budget>>>more wasted tax money held hostage which could re-build America or go toward a desperately needed wall. I am against illegals remaining in our country because they take our jobs, get benefits our own children and elderly don’t get, college assistance…etc. This is the reason they don’t want to become legal.

    It is about time to “Put America First” in enforcing the current laws, protection of our people and police and our own economy.
    Thugs and gangs should be sent out of the country to prisons there, where they will appreciate, even in prison they are protected with rights.
    Houston was really effected by Hurricane Harvey and the out lying areas market is virtually zero.
    I could write for hours on the immoral and sick situation our country is in now…but to no avail. Get rid of career politicians, who by the way escaped
    notice that they were still receiving a pay check, though our Soldiers weren’t.

HOUSTON HOUSING MARKET

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