With the current happenings surrounding the government and its possible shutdown have you been wondering if the housing market will be affected? The answer is yes. If lawmakers do not agree on a budget soon the housing market will suffer during the peak of its buying season. The shutdown would stop the guarantee of loans from the Federal Housing Administration which accounts for 30 percent of the mortgage market.
Our current presidential administration has already stated that the impact of the potential government shutdown would be extremely severe on the housing market. Even more so than the 21 day government shutdown of 1995. The shutdown will also affect a good amount of government programs and service. To avoid the shutdown Congress will have to reach an agreement today on a budget that will set the spending limits until September.
What are your thoughts in the possible government shutdown and the housing market? Let us know by leaving a comment below.
Information from REALTOR Magazine