Fears of rising mortgage rates plague Atlanta market - CBS46 News

Fears of rising mortgage rates plague Atlanta market

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If Congress doesn't vote to increase the debt ceiling, Atlantans worry that could mean increased mortgage rates for homeowners and would-be homeowners.

The mortgage rate increase wouldn't affect homeowners who have fixed-rate mortgages, but could potentially impact people who are buying and who have adjusted rate mortgages (ARMs.)

Cecilia Bailey runs an organization called Resources for Residents and Communities that, among other things, helps people on the verge of foreclosure stay in their homes, and helps put first time buyers into homes they can afford. Bailey is concerned.

"If interest rates rise, that's going to affect a lot of people's ability to afford a mortgage," Bailey said. "If people have adjustable rate mortgages, that could add an impact on a lot of households as well."

But Jay Silliman, a realtor who specializes in selling lofts in Atlanta, said he isn't entirely convinced that rates could go up.

"I'm not sure at this point that the debt ceiling, or what's going on in Washington, has a real effect right now," Silliman said. "I think that the buyers that are out there have been pent up, the demand has been pent up and they're out shopping, moving on with life so to speak."

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