Hoo Boy!

One of the things that gets turned off if there is a government shutdown is FHA loans:

I was hoping not to have to write this particular piece, but it seems I may have no choice, so here we go with housing.

What happens to today's housing market without FHA loans?

Right now FHA loans are about 20 percent of the overall mortgage market (purchases and refis) and 40 percent of purchase applications.

Compare that to around 11 percent of the overall market during the last shutdown in 1995. For the nation's big public home builders, it's far more of an impact, according to analysts. 

This basically means that the housing market shuts down for the duration, because if 40% of home buyers can't buy, the remainder will be able to extract even more in the way of lower house prices.

House prices have fallen 7 straight months, but prices are sticky in the short term, so you will have the housing market freeze.