Dive summary:

• The residential construction sector may feel a substantial drag from the federal spending sequester.
• The Federal Housing Administration may be forced to slow down processing of loan approvals because of fewer people in its offices.
• Builders who work on projects with federal aid for low-income housing may hit a snag, too, as those programs are reduced, the Department of Housing and Urban Development said.

From the article:

Two representatives for the National Association of Realtors said in a Web posting the Federal Housing Administration acknowledged "furlough days could impact endorsement/claim timeframes for FHA loans." ...