Home sales in the Killeen area haven’t been immediately impacted by the government shutdown.
“Right now, it is a just a little bit too early to tell,” said Jose Segarra, a spokesman for the Fort Hood Area Association of Realtors.
While banks are issuing loans for home purchases, the majority of sales are guarantied by a government entity.
The majority of home loans in the Killeen area are supported by the Department of Veterans Affairs, Segarra said.
According to the VA’s website, its home loan processing center was not affected by the government shutdown, but several other services were.
Mortgages handled by Fannie Mae and Freddie Mac continue to be purchased and securitized as well, according to an article by Forbes.
The U.S. Department of Agriculture, however, closed its home loan processing, though it may not affect area sales, Segarra said.
Only certain areas in the greater Killeen market, such as Nolanville, Lampasas and Gatesville, would qualify for such guaranties, Segarra said.
“Our market is dominated by VA guaranty loans,” he said, noting most people wouldn’t seek out the USDA guaranties.
Segarra said he expects home sales to continue to stay strong in the area despite the shutdown.
However, home sales may decrease if the shutdown deters people from spending money. Another issue may be mortgage payments.
“The majority of buyers are military and they are OK because they are still paying them,” Segarra said. “The civilians, who are furloughed, it may have an effect on them.”