W
ith the longest federal shutdown now over, the housing market is back in motion, but services will not return to normal overnight. Buyers and homeowners seeking specific mortgage products must still exercise patience.
Federal‑backed loans did not halt entirely during the shutdown, yet many agencies processed applications at a reduced pace. The FHA, VA, and USDA programs were among those slowed, as the shutdown began on Oct. 1 and key housing and mortgage services operated with limited staffing or were paused. This left many buyers in limbo and sellers waiting.
“Across the country, FHA, VA, and USDA loans stalled, and new flood‑insurance policies were halted, creating real economic harm that rippled through local economies each day the shutdown continued,” said Shannon McGahn, chief advocacy officer and EVP of the National Association of Realtors. “There is a six‑week backlog, so expect additional delays as they work through it.”
If you’re awaiting approval or ready to apply for a federal loan, remember the process will still take longer than usual. Brian Shahwan, VP of mortgage banking at William Raveis Mortgage, told Realtor.com that borrowers beginning or in the middle of FHA or VA financing should anticipate a lengthy process, especially as the holiday season approaches. “While there are many benefits to FHA or VA routes, speed is not guaranteed right now,” he added. Shahwan noted an uptick in pre‑approval requests, driven not only by the shutdown’s end but also by recent 50‑year mortgage news, the Fed’s decision, and the election’s impact.
For those ready to secure a bank loan or refinance, several factors matter. Mortgage rates are volatile, as seen during the shutdown. Freddie Mac reports a 30‑year fixed rate of 6.24% for the week ending Nov. 13, a 0.02% rise from the prior week but still below the 6.78% level a year ago. Bob Driscoll, senior VP of residential lending at Rockland Trust, explained that the market changes quickly. He advises borrowers to move forward only when they are financially prepared and the numbers make sense. “I always caution against trying to time the market because it’s unpredictable. If rates improve later, refinancing again is always an option,” he said.
The holiday season adds another layer of delay. “While it is still possible to close on a new home or refinance before year‑end, banks may experience slower turnaround times,” Shahwan warned. He recommends ensuring the loan officer has all borrower documents ready once the contract is fully executed. Each bank’s processing times and holiday hours vary, so speak with your officer to gauge the likelihood of closing before year‑end. “Underwriting may be quick, but appraisal and title reports can take time, so it’s best to understand realistic timelines to manage expectations,” he added.
