US debt default could send mortgage rates soaring above 8%

If the U.S. defaults on its debt, it could have potentially disastrous consequences for the already fragile U.S. housing market. That's according to a recent analysis from Zillow, which projected that home-buying costs could surge by a stunning 22% if Congress fails to raise the debt limit by June 1. On top of that, the 30-year mortgage rate would likely skyrocket above 8%, the highest since the early 2000s, according to the report, authored by Zillow senior economist Jeff Tucker. Zillow laid out a bleak scenario for the housing market in the case of a first-ever debt default: Tucker projected 23% fewer sales of existing homes to a seasonally adjusted annualized rate of 3.3 million in September. And by the end of 2024, home values would be down about 5%. To continue reading the rest of the article, please click on the source link below: https://www.foxbusiness.com/economy/us-debt-default-could-send-mortgage-rates-soaring