What the Government Shutdown Means for Mortgage Rates and Home Sales

More volatility, less data and potential closing delay

Author

Mike Ugarte
October 03, 2025 • Estimated Reading Time: 3 minutes

The Shutdown is Here. How It Could Hit the Housing Market

The federal government officially shut down this week for the first time since 2018, and while it may feel like just another political standoff in D.C., the ripple effects could reach all the way to Pembroke Pines, especially if you’re in the middle of buying or selling a home.

Mortgage rates, flood insurance, and overall market confidence are all in the crosshairs.

Capitol, Washington D.C.

What the Shutdown Could Mean for You

  • Key Points in the Article:

    • Mortgage rates may stall or get choppy.
      With the Fed flying blind (no new inflation or jobs data during the shutdown), rates could fluctuate. Investors are already reacting with uncertainty, pushing 10-year Treasury yields lower which could soften mortgage rates in the short term.

    • No new flood insurance policies from NFIP.
      If you’re buying in a flood zone (yes, we have them here), lenders may not allow your loan to close without flood coverage and the National Flood Insurance Program can’t write new policies during the shutdown. That’s already delaying thousands of closings per day.

    • Federal workers might miss mortgage payments.
      This won’t hit our local market as hard as areas like D.C. or Virginia Beach, but furloughed workers across the country could struggle with housing costs if this drags on, leading to possible payment issues or even listing spikes.

    • Market momentum may stall.
      We were just starting to see signs of a fall rebound after a rough spring and summer. If buyers get spooked again or can't close due to insurance or lending delays, sales could take another hit.

    • Local lenders are watching rates daily.
      Most lenders rely on Fed data to guide rate adjustments. Without that guidance, we could see more volatile daily pricing especially for buyers on the edge of affordability.

Bottom Line:

This shutdown isn’t just background noise it’s coming at a time when the housing market is already on edge.

If you're under contract or about to make a move, make sure your lender, agent, and insurance provider are ready to pivot.

And if you're shopping in a flood zone, ask right now about backup insurance options.

Want help figuring out how this might impact your next move in Pembroke Pines?

I’ve got you.