Here's What's Happening
The Debt Crisis and Mortgage Rates (Realty Check Blog, CNBC.com)
As we edge ever closer to D-Day (default day, debt ceiling day, however you choose to see next Tuesday, August 2nd), those of us who live and breathe the housing market are trying to figure out what this will mean to mortgage interest rates.
They are currently bouncing around historic lows and have been for some time. Refinances are surging, as the seven people left who haven't yet refied are scrambling to do so.
But are we all worried over nothing?
"The debt crisis is probably the biggest factor hanging over mortgage rates at the moment," says Guy Cecala of Inside Mortgage Finance. "Once investors feel there is any uncertainty about the U.S. government’s ability to guaranty its debt, Treasury rates and mortgage rates will start to rise – probably by at least 25-50 basis points."
Tuesday, July 26 2:53 PM/ET:Forget about the Gang of Six, we've got the Fab Four
rong>Saturday, July 30 8:20 AM/ET: In Sports ....
It's this quartet — Speaker John Boehner, R-Ohio, and Minority Leader Nancy Pelosi, D-Calif., in the House; Majority Leader Harry Reid, D-Nev., and Minority Leader Mitch McConnell, R-Ky., in the Senate — who will have to draw on their experience, skill and charm to find the deal and the votes to pass it for averting an unprecedented government default next week.
It also has to be a deal that can get President Barack Obama's signature.
Deadline pressure is testing those abilities, and their tempers.