The ongoing shutdown is already freezing key USDA loan activity and injecting uncertainty into the rural housing market. At the same time, mortgage application data from the MBA shows refinancing strength despite softer purchase demand. And over in proptech, Zillow is teaming up with Esusu to help renters build credit—potentially opening up new buyer pipelines even in a sluggish market. Below we break down what’s happening, and how professionals on both sides of the transaction can stay ahead of the challenges.
USDA Loan Halt Amid Shutdown
Read the Full Story → Realtor.com
The federal shutdown has placed a freeze on USDA rural housing programs, putting a stop to new USDA direct and guaranteed loan activity. This impacts thousands of rural buyers who depend on these programs for affordable homeownership, often with zero or low down payments.
Some in-process deals may still close if they already received conditional commitments, but any new commitments are off the table until the government reopens. This has thrown a wrench into timelines for both buyers and sellers, especially in small markets with heavy USDA reliance.
With over $7 billion in USDA loans at stake, the shutdown’s impact is far from minor. Lenders and agents working in rural markets will need to communicate early and often to manage buyer expectations and explore alternative loan options where possible.
Mortgage Applications Dip, But Refi Is Holding Up
Read the Full Story → MBA
In its latest survey, the Mortgage Bankers Association reports that mortgage applications overall dropped 12.7% week-over-week. But amid that decline is a bright spot: refinance activity is still showing strength compared to this time last year.
While refinances dipped 8% from the previous week, they remain up 16% year-over-year—a clear sign that many borrowers are still chasing lower rates or restructuring debt while they can. Purchase loan activity also softened slightly but still reflects steady demand in key segments.
For loan officers and brokers, this means refinance volume continues to provide a valuable revenue stream, even as purchase demand feels the pinch of affordability concerns and seasonal slowdowns.
Zillow + Esusu: Credit Building for Renters
Read the Full Story → Scotsman Guide
Zillow has partnered with Esusu, a fintech company that helps renters build credit by reporting on-time rental payments to credit bureaus. This move has the potential to reshape how renters transition into homeownership.
By partnering with Zillow, Esusu gains broader exposure to renters who may not have traditional credit files but are responsible with their monthly housing payments. For many of these renters, this credit boost could help them qualify for mortgages sooner.
With affordability tight and financing programs like USDA paused during the shutdown, these private credit-building innovations could play a larger role in preparing the next wave of homebuyers.
Loan Officer Perspective
This shutdown may be stalling USDA files, but it’s also a great reminder to dig back into your database for refi opportunities. With refinance volume still trending up year-over-year, now is a good time to reconnect with clients who didn’t lock in last year or who may have new financial goals.
You should also review your current pipeline and flag any USDA-dependent transactions. Having proactive conversations about possible delays and alternate financing will go a long way in building trust and keeping deals alive.
Also, the Zillow–Esusu partnership opens the door to a new conversation with renters. Many may not realize that their rent history could now work in their favor. Educating your referral partners—and your audience—on this shift could build future buyer pipelines you didn’t even know you had.
Real Estate Agent Perspective
If you’ve got rural listings or buyers leaning on USDA financing, now’s the time to get ahead of the message. Let them know the shutdown has paused funding, and encourage buyers to have a Plan B lined up—whether that’s FHA, conventional, or waiting it out.
Sellers should also be prepped for longer timelines or buyers needing to change financing midstream. A little prep now can save a lot of stress later.
Meanwhile, the Zillow and Esusu news could be a sleeper win. Renters improving their credit today could be your clients tomorrow. Stay in front of them through renter-friendly marketing, and offer tools or resources that help them start their homeownership journey.
Home Buyer & Seller Perspective
For homebuyers counting on USDA financing, the current shutdown puts your plans on hold. Unfortunately, new USDA loans won’t be issued until government funding resumes, which could take days or even weeks.
If you’re a seller working with USDA buyers, expect potential delays or dropped deals. Talk to your agent about how to protect your sale or attract other types of financing.
Not sure what your next move should be? Contact the loan officer or real estate pro who shared this post. They can help you sort through your options and make sure you’re not left waiting in the dark.
Frank’s Thoughts
It’s easy to panic when you hear the word “shutdown,” but I think this is where professionals shine. What sets you apart isn’t just how you close loans—it’s how you handle chaos with calm and clarity.
Refi business being up year-over-year tells us people still want to act. They just need someone to guide them through it. Be that guide. Be the calm in the storm.
And let’s not overlook the Zillow–Esusu story. That’s a reminder that innovation is still happening. There are always new buyers waiting to be found—you just have to know where to look. Stay sharp out there.
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