There has been a lot of buzz recently about the government shutdown, and if you’re in the middle of buying a home, refinancing, or even just thinking about it, it can feel a little unsettling. I totally get it — there’s a lot of information (and noise) out there.
So, we here at Sentinel FCU wanted to take a moment to explain what this really means for the mortgage world — and what it might mean for you.
Mortgage Rates Might Move Around
When the economy feels uncertain, the markets react — and that can make mortgage rates unpredictable.
Sometimes, mortgage rates dip when investors look for safer places to put their money, like U.S. Treasury bonds. Other times, mortgage rates can slightly increase if there’s concern about the economy slowing down.
However, it is important not to panic over the headlines. If you’ve found the right home or refinance opportunity and the rate works for your goals, it still might be a good time to lock it in and keep your momentum going.
Expect a Few Delays
Even though your mortgage comes locally from right here at Sentinel, we do rely on a few government agencies for certain parts of the process, which can be affected during a shutdown.
Here’s what might slow down during this shutdown:
• IRS: Getting tax transcripts may take longer.
• Social Security Administration: Verifying Social Security numbers could be delayed.
• USDA Loans: These usually pause completely until the government reopens.
• FHA and VA Loans: These typically keep moving, but with a few backlogs possible.
If you’re already under contract or planning to start soon, just build in a little extra time and we’ll do our best to keep things moving as fast as we can.
What This Means for Buyers and Homeowners
Uncertain times like these can make people hit pause — and that’s okay. But there’s actually a bit of good news, too.
When there are buyers sitting things out, that means there is also less competition for homes — and sometimes more room to negotiate.
And as far as refinancing goes, we’ve seen some of the lowest rates in months lately, so it’s still a great time to look at your options.
How You Can Stay Prepared
Here are a few small things that can make a big difference right now:
- Get your documents (especially tax returns) in early.
- Stay in touch — communication is everything.
- Don’t be afraid to ask questions — I’d rather you feel confident every step of the way.
- And most importantly, remember: this is temporary.
Takeaway
Yes, a government shutdown can cause some slowdowns and a bit of uncertainty — but it doesn’t mean your homebuying or refinancing journey has to stop.
Here at Sentinel Federal Credit Union, we’ll keep doing everything we can to move your mortgage forward, even when things feel a little unpredictable.
If you’re wondering how this might affect you, reach out to me, Kaylee Hamling. I’m happy to speak with you, answer any of your questions, and help you find the best path forward.
