The housing market correction would regain new life if the U.S. defaults, says Moody’s chief economist

Mortgage rates could spike if the U.S. defaults (Credit: Getty Images)

Speaking in front of Congress earlier this month, Moody's Analytics chief economist Mark Zandi told senators that by his calculation the U.S. Treasury could run out of cash as soon as early June. If Congress doesn't act, and the U.S. were to default, it'd have broad economic consequences.

One of the most vulnerable areas of the economy being the U.S. housing market.