Most Americans are undeterred by the shutdown, but affordability concerns persist
The latest federal government shutdown sent ripples through the housing market, but most Americans pressed ahead with their plans to buy homes or cars, according to a new Redfin-commissioned survey.
While 17% of respondents said they were delaying a major purchase and 7% had canceled plans altogether, a solid 65% reported no change in their purchasing timeline due to the shutdown.
“A government shutdown doesn’t just stop paychecks for some federal employees—it shakes the financial confidence of Americans," Redfin chief economist Daryl Fairweather, said.
"People across the country are taking in the news and thinking, ‘we’ve faced inflation, tariffs, job losses, a volatile stock market, and now a government shutdown—what’s next?’ It’s understandable that some people are reconsidering buying a home or a car when the economy feels uncertain."
The shutdown, which began October 1 after lawmakers failed to reach a budget agreement, left roughly 2 million federal workers without pay—750,000 furloughed and the rest working without compensation.
The White House has floated the possibility of not paying furloughed workers for time missed, adding to the uncertainty. Contractors and private sector workers tied to federal projects also faced disruptions.
Economic uncertainty weighs on buyers
The shutdown is just the latest in a series of economic headwinds. In an August Redfin-Ipsos survey, over two in five American workers reported delaying or canceling a major purchase due to job security concerns.
In April, 24% said they were canceling purchases because of tariffs, and another 32% were delaying plans.
Consumer sentiment around homebuying remained sour. Fannie Mae’s September National Housing Survey found 73% of Americans called it a bad time to buy a home, up from 72% in August. The Home Purchase Sentiment Index held at 71.4, near its lowest point this year. Mortgage rates ticked up, with Freddie Mac reporting the average 30-year fixed rate at 6.3% in late September.
Brian Mozley, chief growth officer at Choice Mortgage Group, previously told Mortgage Professional America, “There’s an income crunch right now where their income has not gone up. Appreciation and inflation have gone up, so it’s a lot more difficult for them to buy a home.
Homefront Lending LLC’s Ross Sykes says fear often holds first-time buyers back, but transparency and connection can change that. He stresses guiding clients through every step and offering a clear path from “not yet” to “ready.”https://t.co/vEqmmXGzAv
— Mortgage Professional America Magazine (@MPAMagazineUS) October 9, 2025
Short-term shutdown could ease rates
Despite the gloom, some analysts see a silver lining. Eric Hagen, managing director at BTIG and former Treasury analyst, told Mortgage Professional America that a short-term shutdown could push mortgage rates lower as the Federal Reserve faces pressure to cut rates.
“The momentum for mortgage rates to be lower is high,” Hagen said.
“If it lasts just a week or two, I would expect almost no hiccups in the flow of capital. The originators are really focused on lower rates, and the investors are equally focused on the potential for lower rates.”
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