How the U.S. government shutdown may impact mortgage rates

Mortgage Rates & Market Impact - Government shutdown could impact mortgage rates, with the 10-year yield at its lowest since September 18 [1] - Mortgage lenders are hesitant to react, awaiting confirmation of the downward trend [1] - National Flood Insurance Program (NFIP) will continue claim payouts but halt new policies/renewals, impacting approximately 1,300 property sale closings per day [2] Government Loan Programs - FHA mortgage program will operate at reduced capacity, slowing the process for borrowers seeking low down payment loans [3] - VA loans will also be affected, with exceptions for specific products and critical operations [4] - FHA, VA, and USDA loans constituted just over 33% of all mortgage applications last week, indicating a significant potential delay [4] - USDA home loans will halt new direct and guaranteed home loan issuance, postponing scheduled direct loan closings [5] Risks & Delays - Closings for guaranteed loans without a guarantee will proceed at the lender's own risk [5] - The housing process faces significant delays due to the shutdown's impact on various government agencies and loan programs [5]