Economist Peter Morici breaks down what the national debt is, why it ballooned to more than $34 trillion and what it means for Americans.
Prospective homebuyers in the U.S. are keeping a close eye on the Federal Reserve as they eagerly await interest rate cuts that could offer relief from painfully high borrowing costs.
But there is another factor that could keep mortgage rates elevated in the coming months and years: the U.S. national debt.
“As mortgage rates remain near 7%, a lot of attention is being paid to the timing of Federal Reserve interest rate cuts,” said Lisa Sturtevant, Bright MLS chief economist. “But a delay in Fed rate cuts is not the only reason mortgage rates will remain higher for longer. A record-high federal debt is also contributing to persistently high mortgage rates.”
That’s because the federal government has to pay a massive amount of interest on the debt that it owes. To do so, the government will…
