Lawmakers have yet to come to an agreement on the debt ceiling. Democrats want to raise it, without any strings attached, and Republicans are calling for spending cuts. If Congress fails to raise the limit in the coming weeks, Treasury Secretary Janet Yellen claims, economic “calamity” would ensue.
So how would that so-called calamity play out in the U.S. housing market? In a report published on Thursday, Zillow's senior economist Jeff Tucker argues that mortgage rates could top 8% if the U.S. defaults on its debts—which could happen as early as June 1.
