The housing market is on high alert in the face of a potential government default. With many economists predicting that home prices could rise more than 20%, it’s no surprise that homeowners and prospective buyers alike are feeling anxious about their investments.
A government default would have far-reaching consequences for the housing market, as rising interest rates and decreased consumer confidence make it difficult to secure financing or refinance existing mortgages. This means fewer people will be able to purchase homes, resulting in lower demand, which could lead to further drops in prices across all types of properties.
In addition, banks may become hesitant to lend money due to increased risk associated with a government default, making it harder for those who do qualify for loans or refinancing options to get access to them at reasonable terms. This could result in less competition among buyers and cause prices even further downward pressure on property values overall.
Fortunately, there are steps individuals can take now to protect themselves from any potential fallout from a possible crash such as paying down debt where possible so they can still qualify for financing if needed; shopping around different lenders; researching local markets before investing; and staying up-to-date on economic news affecting mortgage rates so they’re prepared whatever happens next with the economy.
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