The Real Deal New York

Raise the debt ceiling: NAR president

October 11, 2013 10:37AM

Gary Thomas

Gary Thomas

The National Association of Realtors said yesterday that Congress should raise the federal debt ceiling in order to avoid a default that would be “catastrophic” for the national housing market’s recovery.

In testimony before the Senate Committee on Banking, Housing and Urban Affairs, NAR president Gary Thomas said that unless the debt ceiling is raised in “a timely manner,” the country would face a recession that would wipe out the recent progress made in home prices, home sales and new residential construction.

“The momentum of the housing recovery will be in serious jeopardy if Congress is unable to move past unnecessary political brinkmanship over raising the debt limit,” Thomas said. “A default, or even the perceived threat of a default, could result in a harsh and long-lasting recession, which may be even more severe than the previous economic downturn.”

Even a one percent increase in mortgage rates could lead to up to 450,000 fewer home sales, Thomas said. The increase would push out many potential homebuyers by increasing their monthly mortgage payments and debt-to-income ratios, he added.

The uncertainty of the debt ceiling combined with the shutdown of the federal government has left New York City in somewhat of a deal-making limbo, as The Real Deal reported. [Inman News]  – Hiten Samtani

  • How Could you

    Lets default and start new. Do not raise the debt ceiling. Top much spending going on. 17 trillion, ridiculous. We need a reset. Screw China nad the others. We made them enough money. Now we need to help ourselves before we start helping others again. We help others by borrowing from others. Thats like me borrowing from my neighbor to give to payback someone else. Isnt Madoff in prison for this?

MENU