The government shutdown is starting to cripple the real estate business just as it was starting a comeback. You might ask how this is happening, well, here are just some of the reasons.
- FHA and VA loans are being delayed because of lack of staff
- USDA loans which are for low income borrowers, have ground to a complete halt.
- IRS is down, so FHA and conventional loans cannot verify tax documents, delaying or killing loans.
All this means that real estate deals are being put on hold, or in some cases, just falling apart. There is a real good chance if this idiotic shutdown continues that interest rates will climb. A one percent increase in the interest rate and shutdown could mean a decline in 450,000 home sales. Welcome to another depression, thanks some die hard conservatives.
John J. O’Dell
Real Estate Broker