As President Donald Trump approaches his first 100 days in office he has prepped Congress for a showdown this week in what he’s calling a must-pass spending bill which includes money allocated towards the Mexican border wall.
However, many Democrats have said that any spending directed towards the wall will likely force a government shutdown. In a tweet posted this past Sunday, President Trump said “The Democrats don’t want money from budget going to border wall despite the fact it will stop drugs and very bad MS 13 gang members.”
A government shutdown could have staggering effects on the real estate market as many government back loans in progress such as VA loans, FHA loans, and USDA loans could suddenly be delayed pushing borrower’s closing date back several weeks.
The last time the government shutdown, from October 1 through 16, 2013, “approximately 800,000 federal employees were furloughed and another 1.3 million were required to report to work without known payment dates.” Additionally, hundreds of thousands of Americans’ loans were delayed causing buyers and sellers thousands of dollars of cost in interest, moving expenses, and lease payments.
“Speaker Paul Ryan told House Republicans on Saturday that a spending bill will be ready in time to avert a potential government shutdown at week’s end and keep agencies running through the end of September.” Ryan provided few details concerning what that would look like.
Ultimately, this week is going to be a heated one in our nation’s capital. Buyers and sellers should continue to operate as planned but stay prepared for anything.