The lingering government shutdown is grinding real estate transactions to a halt across in the region, notably due to a lack of available loans. Many of the most prominent lenders to potential home buyers are government-backed, and thusly not processing home loans while the government is in the midst of a shutdown. Rhonda Reap-Curiel is the president of the Metro Realtors Association and says the situation is getting dire. “1,400 home applications per day are being delayed or will not go forward because of the shutdown,” she explained.
Additionally, homes in flood zones cannot sell due to the Flood Insurance Program being closed during the ongoing shutdown. This is especially problematic in flood-prone Louisiana. Reap-Curiel warns that there could be months worth of reverberating issues due to these sales delays. “The majority of mortgages in Louisiana are done with government-backed loans,” she says. This means the backups are already beginning, with no end to the shutdown currently in sight. This could lead to lingering frustrations to potential home sellers and buyers in the region for some time.