Wednesday, October 2, 2013
How the Housing Market Could be Affected by the Government Shutdown
Just as the housing market is getting better there is now a
possibility of it to begin to slightly decline again. With government
workers facing possible furloughs, consumers may not have the confidence
to purchase a home. A steady income is needed to be able to make
payments on a mortgage but some will not be receiving paychecks and may
back out of deals and put off buying a new home until things become more
stable again. Most lending companies will not be affected and will
resume lending for mortgages since they are not federally owned. Other
government funded sources for the housing market such as the Federal Housing Administration and
the Department of Veterans’ Affairs may be shut down and therefore will
not process applications and requests for assistance. If people are not
getting the money they need, they will not be renting or buying homes
during a government shut down. That being said, a short term disruption
of funds during that time would certainly be detrimental, but shouldn’t
have a long term affect on demand or housing affordability.
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