Friday, July 15, 2011

Will Raising the Debt Ceiling Help or Hurt Home Sales?

When thinking about the issue of raising the debt ceiling, one might also wondering how that will affect, or not affect, the housing market. For sellers and buyers of Lawrence, KS homes for sale it could be a concern. Homes for sale in Lawrence, KS are already sitting on the market too long in many cases and the last thing sellers of Lawrence, KS Homes for Sale need is Washington maker matters worse.

The experts say that the connection between the debt ceiling, the housing market, the construction industry and the broader economy is the rate of interest paid on the US Treasury bonds and the mortgage rates. Failing to raise the debt ceiling, which is the maximum amount the government can borrow without additional congressional approval, would cause the interest rates to climb. The climb could be mild or more severe and could keep rates higher for some time.

Obviously, this is not something you want to see happen if you currently have a Home for Sale in Lawrence, Kansas. This would most likely prevent many buyers of Houses for Sale in Lawrence, KS to be unable to afford those Lawrence, KS Homes. Therefore, any rise in interest rates would have a negative impact on the housing market.

However, whether the debt ceiling is raised or not, there is no assurance that the housing market will be stable. There are too many other factors that are negatively impacting the housing market nationally as well as locally. Therefore, the decision to raise or not raise the debt ceiling will not destroy the housing market. It will continue to limp along either way.