It would "massively reshape how the nations around the world perceive any promises made by the U.S.," Stevens added. While Zillow's projections put the peak around the low 8% range, Stevens thinks those numbers could be “worse." Tucker also estimates that unemployment would jump from 3.4% to 8.3% in October, while federal benefits like Social Security, Medicare, as well as food, veteran and housing aid, would freeze. Tucker estimates that rates for a mortgage with a 30-year-fixed rate could jump from 6.125% to 8.4% by September. The rate increase would "literally crush the housing market," Stevens said, "as buyers would no longer be able to buy, or simply not want to buy, at these high rates." This would build on the Fed's already sky-high interest rates which have steadily increased over the past year amid inflation. Why? The financial system relies on the assurance that Treasury debt is risk-free, so investors will likely demand much higher rates on bonds to compensate for the new risk, Mark Zandi of Moody's Analytics said. defaults, interest rates will spike across the board, former CEO of the Mortgage Bankers Association David Stevens told Newsweek. Home sales would decline sharply, with deficits of up to 23%, and home values could fall 5% below the baseline of what's expected should there be no default, Zillow senior economist Jeff Tucker said. We appreciate your feedback and you starting your day with us.Ī Debt Default Could Throw the Housing Market Into DisarrayĪs Democrats and Republicans remain gridlocked over the decision to raise the debt ceiling, economists warn that a debt default would cause "a major negative shock to housing market activity."Įconomists are sounding the alarm on what a debt default would mean for the U.S. If you have any story tips, feedback or ideas for what we should do next, please email Emeri B. If you've been forwarded this email, you can sign up on /newsletter. If you like this newsletter, please share it. Meanwhile, Russia has deployed troops with "poor morale and limited combat effectiveness" due to a severe shortage, according to the British Ministry of Defence. In the ongoing war in Ukraine, Russian troops "fled from the flanks" around the besieged city of Bakhmut, Wagner Group leader Yevgeny Prigozhin said.She faces up to life in prison without parole. and Canada and seven other injuries.Īn Idaho jury found Lori Vallow Daybell guilty of killing her two children in a doomsday plot and conspiring to kill her husband's ex-wife. is refusing to recall 67 million airbag inflators that safety leaders say could create an "unreasonable risk of death and injury." The National Highway Traffic Safety Administration is demanding a recall, blaming the defective inflators for the deaths of two people in the U.S. Meanwhile, a new Congressional Budget Office report stated the Treasury Department faces a "significant risk" of running out of money in early June if an agreement to raise or suspend the debt limit is not reached. President Joe Biden and congressional leaders will meet early next week to resume debt ceiling negotiations, the White House said.The ceasefire was scheduled to take effect at 10 p.m. After days of fighting, Israel and Palestinian Islamic Jihad have agreed to a ceasefire, according to The Times of Israel.Ron DeSantis rallied in the battleground state earlier in the day, though he has yet to announce a bid for the White House. Former President Donald Trump canceled a Saturday evening rally in Des Moines, Iowa, due to tornado warnings.
The bill now goes back to the state legislature and if one Republican in either chamber supports the veto, it will not become law. North Carolina Governor Roy Cooper vetoed legislation that would have banned nearly all abortions after 12 weeks of pregnancy in a rare public display on Saturday.Ukrainian President Volodymyr Zelensky spoke with Pope Francis about the urgent need to get "tens of thousands" of deported Ukrainian children back home when the two met today in Rome.Polls have opened in Turkey as Turkish President Recep Tayyip Erdogan faces one of the biggest tests of his political career. Erdogan is running against Kemal Kilicdaroglu, Turkey's main opposition candidate and the head of the center-left Republican People's Party, in an election that could shape the future of the country's relationship with Vladimir Putin and the West.
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