Federal Shutdown Could Surprisingly Lower Mortgage Rates
WASHINGTON D.C. - A potential federal government shutdown, looming as Congress struggles to agree on a funding bill, could unexpectedly drive mortgage rates down, economists say. While a shutdown would disrupt numerous government services, the resulting economic uncertainty frequently enough leads investors to shift funds into the relative safety of U.S. Treasury bonds, a move that historically correlates with lower mortgage rates.
This dynamic arrives at a critical juncture for prospective homebuyers and those looking to refinance. Mortgage rates have remained stubbornly high throughout 2023 and 2024, significantly impacting housing affordability. A shutdown, though undesirable for many reasons, could offer a temporary reprieve, potentially creating a window of prospect for those seeking to enter the market or adjust thier existing loans. The impact,however,is not guaranteed and depends heavily on the duration and severity of the shutdown.
The regulations governing short-term rentals in New York City, specifically Local Law 18 (LL18) and related city rules, apply to family homes as well.Airbnb is the sole source claiming these laws haven’t improved housing affordability; the intent was not to lower rents, but to curb rent increases tied to short-term rental activity and establish a legal framework for hosts.
