The National Association just completed a survey on January 7, 2019, with agents across the nation and it seems the longest government shutdown in history hasn’t yet impacted their business. At least 75% said it had no impact on their business. Interestingly, only 22% of the Realtors were reporting any type of an impact to their business and it’s not because of loans being processed – it’s because the buyers are nervous about moving forward with a home purchase and are deciding to delay their purchase and wait to see what happens.
However, Chief Economist Lawrence Yun feels that if the closure continues then it can disrupt mortgage applications, increase delinquencies and maybe impact our business down the road. Here’s a quote from him I found online and a link to see the quick video he just completed: https://youtu.be/b5Ywn8RYWyI
“The government shutdown is an unambiguous negative for the real estate market,” says NAR Chief Economist Lawrence Yun. “It is delaying activity that would otherwise occur.”
As of the middle of this month, it looks like most home purchases were not interrupted because of a conventional mortgage. But, if you have a rural loan for USDA, then you won’t be so lucky as their employees are furloughed so those loans most likely aren’t getting approved right now.
I guess the good news would be that the IRS that verifies the potential borrowers’ income is still continuing to work through the current shutdown. I am also hearing that the National Flood Insurance Program is back in operation so buyers shouldn’t have problems getting flood insurance with their loans.
I think it’s a general consensus that folks are concerned about where our economy is headed and it’s just uncomfortable for them, especially with the constant state of chaos with our “leaders” and let’s face it…a home purchase is a very MAJOR expenditure!
Here is what NAR is reporting regarding mortgage loans and the government shutdown:
Only time will tell what transpires next…