Tuesday, October 8, 2013

Government Shutdown and Housing

It's week two of the Government Shutdown and the ripple effects continue to spread.  The housing industry is not immune to the standoff in Washington with potential buyers choosing to wait and see instead of buy.

The  mortgage industry has been especially hard hit as FHA and VA loans are taking longer to process or are put on hold completely.  USDA loans, a favorite for first-time buyers are not processing at all. Even conventional loans are feeling the effects of large government furloughs. With fewer employees available to check employment or credit status and complete background checks, the financing process has slowed tremendously.

Interest rates remain low and housing prices have continued to stabilize and appreciate. A quick resolution to the shutdown will be a great relief to the slowly improving housing market.




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