ShareNewsweek
According to Lawrence Yun, chief economist at the National Association of Realtors®, based on recent government shutdowns, the impact on the housing market would be minimal. "Most people assume that any missed paychecks are temporary, and they will be made whole once the shutdown ends," he told Newsweek. On the other hand, a longer government shutdown would have the potential to create a downturn in the U.S. economy, eroding buyers' purchasing power and hurting house demand. Uncertainty in the markets could also drive mortgage rates to spike or drop. "Mortgage rates may temporarily decline as a safe asset investment," Yun said. "No one believes that the U.S. federal government would not honor its interest payment obligations once the shutdown ends. Also, in the past some mortgage approvals were delayed if certain government-backed loans were delayed or income could not be verified by the IRS."