Here is the breakdown:

Fannie Mae and Freddie Mac will likely still continue processing mortgage loan applications but federal employees in the middle of buying a home may not be able to have their income verified.

IRS processes transcripts for income verification and social security verification

FHA, VA and Rural Housing USDA, Reverse Mortgages will become backlogged with minimal staff.

Will it affect rates? There is a slight chance rates will go up due to uncertainty. The Buyers of the bond, which are mortgages that are bundled together and sold so lenders can free up funding to make new loans, are likely to want higher mortgage rates to compensate them for the unpredictability in the market.

But those rates are likely to come down once the government reopens.

The overall impact is more of an inconvenience of time and funding than a complete meltdown.