Tuesday, October 1, 2013

How A Government Deadlock Would Impact Your Money

Efforts in the House of Representatives to delay President Obama's healthcare reforms, was on the verge of shutting down most of the U.S government offices and services. 

The President said, "Many other functions of government would grind to a halt, throwing a wrench into the gears of our economy". The government equates to hundreds of thousands of jobs and thousands of contracts with other agencies and large corporations. This could negatively impact businesses and spending as well as consumer confidence. 

The current economic rebound and growth would stagnate considerably. Prices would go up as well as mortgage rates. Trading would slow. House sales and refinancing activity could drop back to 2007 levels. Homebuyers and those seeking to refinance do well to lock in rates while they are low.