Now that the longest federal government shutdown in U.S. history has ended, the question that still remains is how will the effects manifest for Florida’s housing market? As the federal workers would resume their work on Thursday of this week, economic reports have also begun to come out, shaping the mortgage rates; apart from that the federal programs, which are the center of the housing market, would also resume accepting new applications.
Potential threats
According to Zillow, more than 2,500 mortgage originations per working day are at risk of delays during a shutdown. The National Flood Insurance Program will now go through pending applications, conduct property evaluations which would have a significant backlog and accept new applications with policy issuance. Florida buyers — especially those in flood-risk coastal zones — may face longer timelines than buyers in other states. The whole process will take longer than it used to, meaning buyers could be taking a big risk if they close the deal before they are issued a policy specifically the ones in flood prone zones.
Jeff Ostrowski, Housing Market Analyst at Bankrate, also stated, “If you’re expecting to close in a week or a month, there could be some slight delay, but for most people, it’s probably going to be a blip more than a real deal killer.” Overall, the process of buying or selling would take a little longer and patience is the key factor for any successful deal during this time.
Mortgage Bankers Association indicated that On November 7, 2025, the mortgage purchase applications touched 6%, which was relatively high during the shutdown phase.,
“Based on the unadjusted purchase index for the week, this was the strongest start to November since 2022,” said Joel Kan, MBA’s deputy chief economist.
It suggests that a large desire buyer base returning to the market although it would be slow.
Current market activities
“Applicants for FHA, VA, or USDA loans—which account for about one-quarter of all mortgage applications—may encounter significant processing delays due to agency furloughs,” Realtor.com Senior Economist Anthony Smith said “A full recovery will be a slower, weeks-long process due to accumulated agency backlogs, cautious consumer behavior, and permanent economic loss”
With that the U.S. department of Agriculture which was on pause from the last 43 days would now start issuing loans and guarantees for rural properties. According to a Redfin Report new listings are up 4.3%.
For Florida, the combined threats of flood zones, insurance complexities, and huge dependency on federal programs, the post-shutdown recovery could take longer when compared to other states.
Florida specific concerns
It looks like the deals will close faster than ever, especially ones that were pending for a longer period of time. There will be a strong inventory turnover as pending listings turn into contracts. A little price softness for the sellers market will be low and demand high.
While everything gradually comes back to normal operations, buyers will remain cautious, the pending deals from shutdown will close fast, even when mortgage rates are trying to stabilize. A slight spike will occur, and Florida could face insurance related pressure due to a large number of coastal regions.
