RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
  • Agents
  • Brokers
  • Teams
  • Marketing
  • Coaching
  • Technology
  • More
    • Headliners New
    • Luxury
    • Best Practices
    • Consumer
    • National
    • Our Editors
Join Premier
Sign In
RISMedia
  • News
  • Premier
  • Publications
  • Events
  • Education
  • Newsmakers
  • Power Broker
No Result
View All Result
RISMedia
No Result
View All Result

Government Funding Extended, Averting Shutdown

Home Industry News
By Jordan Grice
December 3, 2021
Reading Time: 2 mins read
Government Funding Extended, Averting Shutdown

A potential government shutdown was avoided today following President Joe Biden signing off on legislation late Friday afternoon, extending government funding until Feb. 18. The bill-signing came following an eleventh-hour decision by Congress Thursday, before heading to the president’s desk today.

The move also averted potentially devastating impacts on the real estate industry. 

December will be a busy time for lawmakers who still have another critical fiscal decision regarding the government’s debt limit, which is less than two weeks away, and efforts to pass the Build Back Better Act before the end of the year. 

Democrats and Republicans hashed out a deal in October to temporarily extend the federal borrowing limit until Dec. 15 to avoid a looming default that would have dealt a crippling blow to the nation’s recovering economy. 

With more than $8 trillion in mortgage debt backed by the federal government, the real estate industry is highly susceptible to market instability, according to an October statement from the National Association of REALTORS® (NAR) regarding debt ceiling negotiations. 

At the time, NAR President Charlie Oppler encouraged Congress to continue working on a long-term debt ceiling.

“A debt default would unleash unnecessary and unknown harm on the economy and our 1.5 million members, most of whom are small business owners,” Oppler said.

The stakes of a deal not being reached are massive in real estate, says Matthew Gardner, chief economist at Seattle-based Windermere Real Estate.

“All of a sudden, if that occurs, then the full faith of the United States government disappears,” Gardner says, indicating that people would likely dump their holdings of treasury bills which could lead to a substantial surge in mortgage rates. 

“You want to get back up to 18% mortgages again; that’s the way to do it,” Gardner continues. “Bottom line is if there is no trust in the government to get paid on your holdings of their debt, then you’re going to dump it, and there will be no buyers out there for it—at least not at the interest rate that would be normalized. Because of that, you’ll find that those yields will have to skyrocket to attract any form of would-be investors.” 

While Gardner acknowledges that a federal default would be “a very scary situation to be in,” he isn’t ready to sound the alarms yet.  

“We’ve hit the ceiling any number of times, and it’s one of those bizarre things where everyone gets worried about it, and miraculously at the last minute, it gets fixed,” he says.  

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news ideas to jgrice@rismedia.com.

Tags: Government ShutdownIndustry NewsReal EstateReal Estate Advocacyreal estate news
ShareTweetShare

Jordan Grice

Jordan Grice is RISMedia’s associate online editor. Email him your real estate news to jgrice@rismedia.com.

Related Posts

What It Will Take to Get More LGBTQ+ Buyers and Sellers Off the Sidelines
Agents

What It Will Take to Get More LGBTQ+ Buyers and Sellers Off the Sidelines

July 6, 2022
Mortgage Applications Change Course After Three-Week Run
Agents

Mortgage Applications Change Course After Three-Week Run

July 6, 2022
ERA Real Estate Expands in Idaho Market
Agents

ERA Real Estate Expands in Idaho Market

July 6, 2022
Cynthia Keskinkaya Joins Berkshire Hathaway HomeServices New York Properties
Agents

Cynthia Keskinkaya Joins Berkshire Hathaway HomeServices New York Properties

July 6, 2022
Summer Social Posts to Heat Up Your Real Estate Business
Agents

Summer Social Posts to Heat Up Your Real Estate Business

July 6, 2022
The Hunt Is On—Catch Up On Season 2 of ‘First-Time Buyer’
Agents

The Hunt Is On—Catch Up On Season 2 of ‘First-Time Buyer’

July 6, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Tip of the Day

The Great Retirement Is Here

The Federal Reserve Board found that the average net worth of households with a head of household aged 55-69 rose... Read more.

Business Tip of the Day provided by
REGISTER NOW

Recent Posts

  • What It Will Take to Get More LGBTQ+ Buyers and Sellers Off the Sidelines
  • Mortgage Applications Change Course After Three-Week Run
  • ERA Real Estate Expands in Idaho Market

Categories

  • Spotlights
  • Best Practices
  • Advice
  • Marketing
  • Technology
  • Social Media

The Most Important Real Estate News & Events

Click below to receive the latest real estate news and events directly to your inbox.

Sign Up
By signing up, you agree to our TOS and Privacy Policy.

About Blog Our Products Our Team Contact Advertise/Sponsor Media Kit Email Whitelist Terms & Policies

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.

No Result
View All Result
  • Home
  • Premier
  • News
    • Agents
    • Brokers
    • Teams
    • Consumer
    • Marketing
    • Coaching
    • Technology
    • Headliners New
    • Luxury
    • Best Practices
    • National
    • Our Editors
  • Publications
    • Real Estate Magazine
    • Past Issues
    • Custom Covers
  • Events
    • Upcoming Events
    • Podcasts
    • Event Coverage
  • Education
    • Get Licensed
    • REALTOR® Courses
    • Continuing Education
    • Luxury Designation
    • Real Estate Tools
  • Newsmakers
    • 2022 Newsmakers
    • 2021 Newsmakers
    • 2020 Newsmakers
    • 2019 Newsmakers
  • Power Broker
    • 2022 Power Broker
    • 2021 Power Broker
    • 2020 Power Broker
    • 2019 Power Broker
  • Join Premier
  • Sign In

© 2022 RISMedia. All Rights Reserved. Design by Real Estate Webmasters.