What Does Debt-Limit Fight Mean for Mortgage Rates?

Economists and housing industry experts are keeping a close eye on Washington D.C.’s debate over raising the debt ceiling and what it might mean for interest rates. Congressional Democrats are heading into what even Speaker Nancy Pelosi acknowledges is a turbulent week or two, in which her party will attempt to use its narrow majorities to pass two massive spending bills. At the same time, Washington’s about to hit the limit of debt it can issue to keep paying its bills. Treasury Secretary Janet Yellen says the nation will run up against the debt ceiling sometime in October. Democrats are demanding the GOP follow the tradition of previous debt-ceiling votes and support an increase. Republicans, angry over the Democrats’ decision…