Shutdown could bring housing market to a standstill

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KING, N.C.  -- The government shutdown could bring the housing market to a standstill.

Thousands of applications for home mortgages, backed by the federal government, are at a halt. The closing dates on some mortgages, already approved, are also on hold which could affect applicant’s interest rates.

"It's an opportunity to put down roots and to have stability instead of renting," said Ben Kelble of Stokes County.

Kelble and his wife, Allison, have been saving and planning for their first home for years. Their USDA backed housing loan was supposed to close on Friday but that is now on hold due to the government shutdown.

"Now the issue is if they don't come back to work in the next eight days or so our lock-in for our interest rate runs out, which means our interested rate could rise a quarter of a point," Kelble said.

Thousands, just like the Kelble's, are waiting to close on federally backed mortgages adding to the growing frustrations toward lawmakers who are now holding families back from the American dream.

"They are educated grown men and women that need to realize a lot of people are wanting to continue their lives, continue helping to build the economy," said Allison outside the home she is ready to move into in King.  "People want to help build the country, but when [lawmakers] stop we can't."

The shutdown is also affecting anyone applying for a mortgage.  The IRS is closed which means lenders can't verify tax information from those applying.

"We wish they would do their job," said Ben. "We didn't elect them to shut down."

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