The longer the shutdown continues, the greater the impact on housing

"Among the most immediate impacts is the lapse of the National Flood Insurance Program (NFIP), which supports roughly 4.7 million policies and backs $1.3 trillion in coverage across the country. The NFIP's inability to issue new policies is complicating an estimated 1,400 property transactions each day, leaving many buyers in high-risk flood areas unable to obtain flood insurance before closing on their homes."

"Beyond flood insurance, the shutdown has slowed or halted activity across multiple housing programs. FHA loan endorsements face potential delays, while USDA has stopped issuing new loans and loan guarantees entirely during the shutdown, creating obstacles in financing for first-time and low- to moderate-income buyers. HUD programs that provide rental assistance and community development funding are also operating with limited staff."

"For homebuilders and housing developers, interruptions in federal data collection and agency coordination add another layer of uncertainty. A prolonged lapse could disrupt permitting processes, delay appraisals, and postpone infrastructure projects critical to expanding housing supply. Each day the shutdown continues compounds these challenges. For millions of Americans, it means uncertainty about closing dates, delayed access to affordable housing, and higher costs as markets react to instability."

The federal government shutdown is disrupting multiple facets of the U.S. housing market, threatening programs that support buyers, sellers, landlords, builders, and communities. The lapse of the National Flood Insurance Program prevents issuance of new policies, complicating about 1,400 property transactions daily and leaving buyers in flood-prone areas unable to close. FHA endorsements may face delays, USDA has halted new loans and guarantees, and HUD is operating with limited staff, slowing rental assistance, grants, and technical support. Builders face interruptions in data, permitting, appraisals, and infrastructure projects. Continued shutdown days increase uncertainty, delay housing access, and raise costs.

Read at www.housingwire.com