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There have been some notable changes in the real estate market between week one and week two of the October 2025 U.S. government shutdown. Here’s a summary of the evolving impact:
🏠 Week One: Initial Impacts
- Minimal disruption to closings and contracts.
- FHA and VA loans began experiencing delays, especially where IRS income verification was needed.
- National Flood Insurance Program expired on Sept. 30, halting new policies and risking closings in flood-prone areas like Florida.
- USDA loans were largely paused.
- HUD operated with reduced staff, but existing obligations were still being fulfilled.
- Mortgage rates remained stable, with a slight decline due to increased demand for Treasury bonds.
🏠 Week Two: Escalating Effects
- Federal data blackout (no jobs report, inflation data) created uncertainty for the Federal Reserve, which relies on this data to set interest rates.
- HUD staffing dropped to ~25%, delaying housing vouchers and insurance applications for healthcare projects.
- Mortgage originations tied to federal programs slowed significantly — up to 2,500 per day delayed.
- Closings disrupted nationwide, with estimates of 1,300–1,400 per day affected.
- Renters and federal workers began facing financial strain, especially in cities like D.C., Baltimore, and San Antonio.
- Investor behavior shifted toward Treasurys, potentially pushing mortgage rates lower.
- Real estate transactions increasingly reliant on all-cash offers due to financing uncertainty.
📉 Market Sentiment
- Growing economic uncertainty is making buyers more cautious.
- Realtors and lenders are adapting with workarounds, but delays and volatility are increasing.
- Valuations may compress, and private lending is gaining traction as a more reliable alternative.
🧭 Navigating Real Estate During the Shutdown
Closings delayed, loans paused, buyers cautious. Our flyer breaks down the impact week by week so you can stay informed and proactive. From delayed closings to financing uncertainty, the October 2025 government shutdown is reshaping the housing market week by week. Download the flyer to stay informed. Questions? Comments?
Let’s strategize together!
Week 1 and 2 Combined
shutdown_real_estate_impact_flyer-2weeks
Week 1
