Markets & Economy

3 biggest headaches for real estate if government defaults

Impact on overall economy likely to be felt not with a bang but a whimper, at least at first

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If House and Senate leaders can't work out even a temporary solution to the debt-ceiling crisis by Thursday's deadline, the impact on the overall economy is likely to be felt not with a bang but a whimper, at least at first. As Congress dickers, there are many strategies to delay the impacts of a government default. The government can prioritize payments, delaying defaults on Treasurys, and banks will likely be willing to advance funds to many companies and even citizens that are owed money by the government as the standoff continues, CNBC's John Carney reports. JPMorgan Chase, for one, says it's willing to fund as much as $8 billion in government benefits that it processes every week for clients. But the impacts to housing markets -- already limping from the government shutdown that preceded the current crisis -- could be more immediate. Among the top concerns: 1. Homebuyer sentiment In a climate of uncertainty, would-be homebuyers are likely to keep shopping, but...