Housing market to suffer as U.S. approaches debt ceiling

As the government continues to deny an expansion of the debt ceiling, inflation will rise and that will hinder the housing market, CNBC reported. As inflation continues, interest rates on 30-year fixed mortgages will increase. It won’t be long before mortgage rates surpass the five-percent mark, according to the report (see video above). The combination of costlier mortgages and proposed regulations that require larger down payments on homes has the Mortgage Bankers Association claiming that first-time home buyers and minorities will find it nearly impossible to finance a home purchase.