arum98@gmail.com - Fed hikes and default fears Here is what could be next for the housing market

Fed hikes and default fears Here is what could be next for the housing market   Homebuyers and renters alike could feel relief later this year as home prices stabilize, mortgage rates decline and rent price growth continues to slow. Economists expect the Federal Reserve to pause rate hikes for a time while it observes incoming economic data, some stemming from the banking crisis that led to tightened lending. This could allow mortgage rates to fall even further from their high point last fall and give buyers a little breathing room to take advantage of home prices that are falling from their peaks. But first, Congress must avert a crisis and act on the debt ceiling to avoid an unprecedented default an event that could shatter the U.S. financial system, according to experts. In this unprecedented worst-case scenario, the market would effectively freeze while mortgage rates soared and home sales plunged.  Home-buying costs could rise by 22 percent as mortgage rates sail past 8 percent in the event of a debt default, according to a new analysis from the real estate company Zillow. "In broad strokes, it looks a lot like the impact of what happened early last year, when mortgage rates rose.                     If you don't want to receive these emails in the future, please click here 14125 West State Highway 29 Suite B-203 (Box 372) Liberty Hill, Texas 78642