Debt Ceiling

The debt ceiling is a crucial issue in the United States that affects the economy in several ways, including the real estate market. As a potential homebuyer or seller, understanding how the debt ceiling affects mortgage rates is crucial to making informed decisions.When the government hits its borrowing limit, it can no longer issue new debt to pay for the country's obligations. This situation can lead to a government shutdown, delayed payments, and a downgrade of the country's credit rating. All of these factors can significantly impact the economy, including the housing market.One of the primary ways the debt ceiling affects the mortgage market is through the interest rates. When the government is unable to meet its obligations, investors and lenders become cautious about investing in government debt. This situation leads to an increase in interest rates, including mortgage rates.As a result, potential homebuyers may see their purchasing power reduced as they can no longer afford as much house as they could with lower rates. Homeowners who want to refinance their mortgages or take out home equity loans may also be affected by higher rates. However, the exact impact of the debt ceiling on mortgage rates may vary based on several factors, including the market conditions and the lenders' preferences.Another way the debt ceiling can affect the real estate market is through the buyers' and sellers' behavior. When the government shutdowns or delays payments, it creates uncertainty and affects consumer confidence. Homebuyers may postpone their purchase decisions, leading to a slowdown in the housing market. On the other hand, sellers may become anxious and lower their asking prices to attract buyers, resulting in a drop in property values.In conclusion, the debt ceiling can significantly affect the real estate market, particularly through the mortgage rates and consumer confidence. As a homebuyer or seller, it's important to stay informed about the debt ceiling's impact on the market and be prepared to adjust your strategies accordingly. Consult with a trusted real estate agent or financial advisor to navigate the market during these challenging times.

Moving Now Can Give Your House Its Day in the Sun [INFOGRAPHIC]

Some HighlightsIf you want to sell your house, consider doing it this summer. The days are longer, the weather is warmer, and it’s a great time for sellers.If your needs have changed, now’s the time to capitalize on the low inventory and multiple offers in today’s sellers’ market.Connect with a local real estate agent today if you’re ready to sell your house and move to a home that meets your changing needs.

The Benefits of Selling Now, According to Experts

If you’re trying to decide if now’s the time to sell your house, here’s what you should know. The limited number of homes available right now gives you a big advantage. That’s because there are more buyers out there than there are homes for sale. And, with so few homes on the market, buyers will have fewer options, so you set yourself up to get the most eyes possible on your house.Here’s what industry experts are saying about why selling now has its benefits:Lawrence Yun, Chief Economist at the National Association of Realtors (NAR):“Inventory levels are still at historic lows. Consequently, multiple offers are returning on a good number of properties.”Selma Hepp, Chief Economist at CoreLogic:“We have not seen the traditional uptick in new listings from existing homeowners, so undersupply of housing will continue to heighten market competition and put pressure on prices in most regions. Some markets are already heating up considerably, but price premiums that we saw last spring and summer are unlikely.”Clare Trapasso, Executive News Editor at Realtor.com:“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country . . .”Jeff Tucker, Senior Economist at Zillow:“. . . sellers who price and market their home competitively shouldn’t have a problem finding a buyer.”SBottom LineIf you’re thinking about selling your house, connect with a real estate advisor who can share the expert insights you need to make the best possible move today.