Investments

Investors look to Wall Street as the government shuts down

All attempts for a final funding solution and agreement on health care failed on Capitol Hill Monday, throwing Congress and the nation into the country’s first government shutdown in over a decade at midnight.

But what does it mean for the stock market rally? As of Monday night, the HW 30 — an index of housing and mortgage-related stocks — was down on just the expectation of a shutdown. Federal agencies, including the Department of Housing and Urban Development, were already prepared to close, which means only a few hundred of HUD's employees will stay on the job.

Banking analyst Dick Bove with Rafferty Capital Markets noted that most of the housing economy — including Fannie Mae and Freddie Mac — is funded separately and not impacted by the shutdown.

Most Popular Articles

Latest Articles

Opinion: What is the public actually getting for $7.3B in housing subsidies? 

The Federal Home Loan banks receive billions annually in subsidies, but are skirting their responsibility to support our nation’s housing troubles, argues Sharon Cornelissen, Director of Housing at the Consumer Federation of America.

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please