Politics vs Real Estate

All of us have seen one government shutdown come and go and it sounds like we could be on the verge of another one. Due to recent experiences, most of us have a really good idea of what that means for us individually. Some are affected more than others. Most of the government was unaffected, but even those of us who are not employed by one of the “at risk” agencies still might see some changes as a result.

Really, impacts on the real estate market were quite limited during the last shutdown. Only certain USDA loans were delayed because approval from the agency is required and was not done. Furloughs had some effect due to the duration and might still cause issues for loan approval when trying to prove income. For some Federal Employees, several weeks of zero dollar paychecks can’t be helpful during loan approval but we have not yet seen a huge impact. On the other hand, as a result of political unrest, stock market volatility has pushed many investors into the bond market. While it is not great for short-term investments and your 401(k) balance, it is great for mortgage interest rates. rates are now at their lowest point in months. We’ll see if rates in the low to mid 4% range will last or if another round of turmoil will push them even further. We have already seen at least one approval letter for 4%, the lowest we have seen in years.

It is yet to be seen whether or not another shut-down show-down will actually happen. If it does happen, we can only hope that it doesn’t last as long as the last one. If nothing else, we are a little bit more prepared for the effects.