Yes. Rain, snow, and heavy clouds can, and does affect most GPS units, and rain fade can occur, just like it does on sat. TV. Some times it just affects the accuracy, but can have a total loss of signal..... Tall buildings in a downtown area can cause a loss of signal as well.
I will on occasion, get a loss of sat signal, and the unit will go searching for signal. The signals are usually found again if I walk a few feet........
This time of year, with the leaves gone from the trees, I don't have much of a problem even on rainy days.......but it can happen.