In the past, whenever spending outpaced revenue, Congress has agreed to raise the debt ceiling. Although it is likely that this will be agreed to again by the August 2nd deadline, most economists have indicated that if they are at an impass at that time, home values will likely decline and mortgage rates will likely go up. The reason for this is due to the fact that the government’s reputation would be hurt in the eyes of creditors, which will have a ripple effect on the economy. The end result will be fewer buyers which translates into lower prices.
Another consequence will be that the government will be forced to slash many of the programs that were geared towards first-time homebuyers. This will reduce the number of qualified buyers even further.
In view of this uncertainty, now may be the best time to sell.
The Law Office of William J. Reinhardt, Jr. is available to answer any questions pertaining to the selling your home in the present economic environment. Call 718-377-8880 or send e-mail to firstname.lastname@example.org with any additional questions.