Is debt default spooking home buyers?
The doomsday-like debt default countdown looms over the housing market like the sword of Damocles.
After all, along with an economy that seems perilously close to shifting into reverse, the debt debate fiasco down in Washington is not exactly a confidence builder for potential home buyers.
But has it begun to truly hit home with individual buyers, prompting them to put decisions on hold or even bail after putting homes under agreement?
The number of buyers pulling out at the last minute jumped to 16 percent of home sales in June, up from 4 percent in May, the National Association of Realtors reports. (This number applies just to resales, not to new homes.)
While low-ball appraisals are being blamed, it's also not hard to see some buyers getting spooked by an increasingly worrisome mix of a slowing economy and a potential debt default by the federal government.
CNBC's Diana Olick points out this stat - the rise in home sale cancellations to 16 percent - in this insightful take on the impact of a potential debt default on the housing market.
If you are looking at homes right now, are you holding back right now until you see what happens down in Washington? What's your take?
