Why an overdrawn shutdown could damage the housing market recovery
Experts said mortgage seekers should discuss timelines and expectations with their lender, and inquire about longer commitments, longer rate locks and extension policies for each.
“Right now, it’s business as usual,” said Los Angeles area Realtor Rose Fahey, who hasn’t run into problems with a deal currently in escrow, in which the buyer has a conventional loan.
The greater fear, economists say, is that Congress fails to raise the debt ceiling by Oct. 17, causing the nation to default on its debt and mortgage rates to skyrocket. Affordability would take a dive and potential buyers would grow increasingly uncertain about the economy, said UCLA’s Gabriel.
“We are playing with something big and bad and nasty,” he said of a possible default.
©2013 Los Angeles Times
Visit the Los Angeles Times at www.latimes.com
Distributed by MCT Information Services
- Walmart, Kmart 'Layaway Angels' spreading...
- 10 Great Gift Ideas for People Who Have...
- Better than a raise: The smallest thing you...
- 7 financial lessons from classic Christmas...
- Smart Spending: Buy these items after Christmas
- What managing money has taught me about...
- Are Americans investing or speculating on a...
- Robots vs. minimum wage: As pressure grows on...
- Robots vs. minimum wage: As pressure... 84
- The American Dream is still alive for... 11
- Better than a raise: The smallest thing... 11
- Most US workers unprepared to meet... 8
- Insurance agents feeling left out of... 8
- Dave Ramsey says: Put a temporary stop... 8
- What do the new jobs numbers mean? 7
- What managing money has taught me about... 5