Now that it appears the apocalypse has been avoided, the stars will remain in the sky and the sun will in fact come up tomorrow, what effect did it have on real estate investors? Or what may happen in the future because of the partial government interest rates and shutdownshutdown. Anything? Everything?

 The Mortgage Bankers Association reported earlier this week that mortgage applications fell by 5 percent overall from the previous week and more than 7 percent for government-backed loans to the lowest level since December of 2007. The precipitous drop in government-backed loans, such as VA, FHA and USDA was obviously hit, but only the USDA program is on hiatus during the shutdown mess. Approved mortgage lenders can underwrite their own VA and FHA loans without government, ahem, assistance.

Yet this is no news for the real estate investor as government-backed loans are only for a primary residence, not for rental properties. Essentially the loan volume for rentals was about the same so if there was any type of impact, no one noticed.

Interest rates held steady albeit with a slight drop but 30 year fixed rates for conforming loans are still within a one-eighth percent range with no real swings.  Data for home prices won’t be released until well after any agreement is signed so there’s no way to tell if there was a dip in home sales but if again, it’s doubtful anything of any importance happened with regard to volume.

It appears, at least at this stage, that the massive “shutdown” of the federal government that according to many sources affected about 17 percent of the total government, had no major effect on anyone except now the news anchors and field reporters will have to find something else to swarm over.

It looks like the real estate investment community weathered this shutdown after all. Now let’s get back to work, shall we?