“Yes, the shutdown did in fact impact our business. Specifically with our military and government employee clients. Their pay was disrupted, which prevented taking action on being able to purchase a home. Shook confidence across the board, which also impacted decision making,” Nurani told Mortgage Professional America.
A Redfin survey found that 45% of Americans are now less likely to make big purchases like homes or cars because of the federal shutdown—more than double the 21% who felt that way in early October.
“And I think the impacts of this are still lingering, even after the shutdown. People don’t just bounce back to everything’s okay. Especially considering the current reopening is only good through January, at which we are at risk of another shutdown,” he said.
Processing delays and backlogs remain
The shutdown forced agencies like the USDA to halt new rural loan guarantees, leaving buyers and lenders in limbo. With operations resuming, the agency now faces a bottleneck as it works through a backlog of applications.
The National Flood Insurance Program, which underwrites over 90% of residential flood insurance policies nationwide, is also resuming new policy processing. However, buyers closing on properties in flood-prone areas may still face delays as the program clears pending evaluations and issuances.