Possible Government Shutdown affects Housing Market

Hopefully the federal government will come to an agreement today on the federal budget and funding before the midnight deadline.
A government shutdown would essentially throw the forward momentum happeningin  real estate into neutral.  In recent years, many buyers have turned to FHA because of the lower downpayment and higher debt ratios.  FHA loan funding would come to a halt with a government shutdown.
Also, at issue is the fact that FHA mortgage insurance premiums are set to increase effective for case numbers assigned on or after April 18, 2011. 
VA and rural housing loans will also be left without funding. 
Buyers scheduled to close the first of next week may be left out in the cold until or unless the government steps up to the plate and keeps the federal government functioning.
Not directly relevent to real estate, but interesting is the fact that congress will still receive a paycheck if the government shuts down, but our armed forces serving at home and overseas will NOT be paid.