It’s been projected that a prolonged government shutdown could convey a considerable drop to the growing housing recovery. As it stands, the housing market is fighting to stay at the top of a 6 year struggle.
If the shutdown lasts for several weeks home sales could stall. Why? Lenders can’t use IRS documents during a government shutdown. Those documents are needed to assess borrower qualifications. “With each passing day, the anxiety in the marketplace is building,” according to a director of Real Estate for the University of California-Los Angeles.
In addition, The FHA’s staff has been significantly reduced. This furlough might cause delays in the processing of FHA-insured loans, as well. For now though, the FHA will continue to lend new single-family loans.
Now, more than ever, it might be time to purchase your first home. First time homebuyers have a bit of advantage during this government shutdown. Interest rates are dropping as we speak.
Are you thinking of selling your home in Raleigh? If so, now might be the best time!
According to the newsobserver.com, “An extended mortgage market freeze could further stall a housing recovery that has cooled after rapid price increases earlier this year. The threat comes just as mortgage rates are falling again, which normally would entice buyers. Rates have tumbled for the third straight week, with Freddie Mac pegging the 30-year fixed loan at an average of 4.22 percent, down from 4.32 percent last week.”
Thankfully, a short-lived government shutdown shouldn’t cause many issues. If it causes any, the headache should be small. Most loans close at the end of each month. They then take about 60 days to process. By then, the shutdown should be over and things should be operating normally.
As of now, the banking industry is going about business as usual. They anticipate only minor disruptions. If you're thinking of selling your home in Raleigh, now might be the best time. As the uncertainty of the government shutdown unfolds, it's best to go ahead and get your home on the market now. Contact The Roark Premier Team today and your home could be under contract and sold by the time the shutdown is over.