Boston condo brokers Q&A on the debt ceiling and the Boston condo market
Boston Condos for Sale and Apartment Rentals
Boston condo brokers Q&A on the debt ceiling and the Boston condo market
How does the debt ceiling affect Boston condo mortgage rates?
How would a debt-ceiling breach impact mortgage rates? The ongoing debt ceiling talks, if not resolved will make it more expensive to buy a Boston condo for sale because a default would force the Treasury Department to pay higher interest on its bonds to convince investors to stick around— and mortgage rates and other borrowing costs tend to follow Treasury rates.
What will happen to housing market if debt ceiling isn’t raised?
A default combined with the downgraded credit rating would in turn cause the markets to tank, the White House’s Council of Economic Advisors said in 2021. If current debt ceiling talks continue for too long, the markets are likely to become more volatile, and Boston condo interest rates will continue to rise at a faster pace.
What happens if the Boston condo for sale market if there’s no resolution?
Boston condo prices will become unsustainable for Boston condo buyers as interest rates rise, purchasers withdraw from the market. Borrowers will be discouraged from taking out loans when interest rates rise. On the other side, new Boston high rise construction will be affected as well; costs will rise, and the market supply of housing will shrink as a result.
Updated: Boston real estate blog 2023
