Summary
The National Association of Home Builders warns that the ongoing government shutdown could cause significant problems for the housing market if it lasts too long. A key concern is that mortgage access might decrease and housing demand could drop. The shutdown affects various government departments, delaying processes like home loan approvals.
Key Facts
- The National Association of Home Builders says that long-term effects of the government shutdown could hit the housing market hard.
- The Senate passed a spending bill, but a partial government shutdown started on January 31 due to funding delays in the House.
- Major areas affected include Defense, Treasury, State, Health, Labor, Housing, Transportation, and Education.
- The Department of Housing and Urban Development is working with fewer staff, which may slow down loan approvals and inspections.
- The National Flood Insurance Program can't issue new contracts during the shutdown, which affects home sales in flood-prone areas.
- The shutdown could make it harder to get mortgages and lower the demand for houses.
- Previous lapses in flood insurance have been addressed by Congress, but it is uncertain if that will happen this time.
