How a government shutdown could affect the economy, housing mark - NEWS10 ABC: Albany, New York News, Weather, Sports

How a government shutdown could affect the economy, housing market

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ALBANY, N.Y. -- If the federal government does shut down, it's not just federal workers that could see an impact, the economy and housing market could as well – but how they will be affected remains a mystery.

"The answer is nobody knows.  It hasn't been tested this way before," said local economist Hugh Johnson.  

He says the current issues in Washington make this specific threat of a shutdown somewhat unprecedented.

"I don't think I've ever seen a time where there has been less interest in negotiations and compromise," he said.

But the important thing right now, he says, "don't get caught up in the short term volatility of this because it can change in a second."

Instead, he says, hold tight and focus on the economy long term.

"The outlooks are still positive for the remainder of 2013 and into 2014."

So what about people already in the process of buying a home?  Local realtor Anthony Gucciardo says if the federal government isn't working, your paperwork will back up as well.

"All of that paperwork could sit and if no one is processing it, it could delay appraisals, closings and property inspections," he said. "Someone could lose a rate lock costing them thousands of dollars.  If they're on a budget, it would throw them over that budget and they could be denied a loan or not have enough money to come up with."

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