Raise the debt ceiling: NAR president

New York /
Oct.October 11, 2013 10:37 AM

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


Related Articles

arrow_forward_ios
Zillow senior economist Jeff Tucker (Zillow, iStock)
US housing market up a historic $6.9T in 2021: Zillow
US housing market up a historic $6.9T in 2021: Zillow
Sam Zell with a RVC Outdoor Destinations site (Getty, RVC)
Sam Zell’s Equity Lifestyle Properties invests $147M in manufactured homes
Sam Zell’s Equity Lifestyle Properties invests $147M in manufactured homes
(iStock/Illustration by Kevin Rebong for The Real Deal)
Existing home sales hit 15-year high in 2021
Existing home sales hit 15-year high in 2021
(iStock/Illustration by Steven Dilakian for The Real Deal)
Black mortgage applicants’ rejection disparity surges
Black mortgage applicants’ rejection disparity surges
Outpaced demand spurred largest decline in 18 months: Redfin (iStock)
U.S. home sales dropped 11% amid waning supply
U.S. home sales dropped 11% amid waning supply
Ulster County, NY (iStock)
Ulster County home prices spiked 20 percent last year
Ulster County home prices spiked 20 percent last year
Liz Nunan, ceo, Houlihan Lawrence (Houlihan Lawrence, iStock)
Lower Hudson Valley notched home sale growth in 2021
Lower Hudson Valley notched home sale growth in 2021
Austin, Texas (iStock)
Texas capital tumbles from top slot among hot housing markets
Texas capital tumbles from top slot among hot housing markets
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...