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Jesus was saying to His disciples that in these people's unbelief they have closed their hearts to God. They aren't literally blind but they can't see because they aren't looking spiritually, they can't hear because they aren't listening spiritually, they can't understand until they seek understanding spiritually. We hear this in different words, but it means the same thing in 1 Corinthians 2:14 "But the natural man receiveth not the things of the Spirit of God: for the are foolishness unto him: neither can he know them, because they are spiritually discerned."
You can't hope to see, hear, understand and know God who is spiritual if you don't seek Him spiritually. How do you do that? God sends people the Holy Spirit, but He's not going to give it to anyone who doesn't even believe He exists. Therefore people's unbelief causes them to be spiritually blind, spiritually deaf, and a lack of spiritual understanding.