U.S. government shutdown has impacted the housing market

Mortgage applications from the Mortgage Bankers Association shows that the U.S. government shutdown has impacted the housing market. Purchases dropped 4.8 %. Because the U.S. government shutdown, the lender has received a form 4506-T from the IRS.

However, lenders can also use the W-2s and tax records to verify this information even more time consuming and requires further examination. As a result, the IRS made ​​it uncomfortable closure. However, the majority of employees shutdown FHA require special treatment such as condos that are not resolved. Complete closure of the USDA rural housing programs also have a positive effect on the program serves nearly 125,000 borrowers during the year. As a result, the application through a government program down 7.4 %.

Mortgage rates have crept up in the last few days of market jitters respond response that the U.S. may hit debt ceiling, but remains relatively low. However, applications have fallen due to the direct impact of the budget impasse and leave the government. While the immediate impact is relatively modest, the impact is eroding consumer confidence.