A looming government shutdown is threatening to disrupt the U.S. housing market just as buyers begin returning amid falling mortgage rates. If Congress doesn’t reach a funding deal by midnight, delays to mortgage processing and home purchases could follow—especially for government-backed loans. These programs are processed by agencies like HUD and the Department of Veterans Affairs, both of which may go dark during a shutdown. FHA and VA applications could stall due to furloughed federal employeesTax transcript requests from the IRS—essential for loan approvals—may also be delayedIn flood-prone areas like Florida and Louisiana, federal flood insurance could lapse, freezing closingsIf the National Flood Insurance Program isn’t renewed, no new flood insurance policies will be issued. That includes portions of the IRS, HUD, VA, and FEMA—all vital to the housing sector.