Per Bankrate, the interest rates for home loans are increasing as a direct result of the ongoing debt crisis talks going on in Washington. Less important is the need to raise the debt ceiling...no one really thinks we are going to default on our debt payments in spite of all the comments intended to scare the public and motivate political rivals.
Regardless of what happens with the debt ceiling most analyists agree it is a foregone conclusion that our credit rating will be lowered from the AAA status we now enjoy. This is more detrimental to cosumers and homebuyers as it will cost us more to borrow. This is a direct reflection on our governments inability to rein in our debt. Most economists agree that with no movement on tackling our debt, the US will lose the confidence of investors. Once that happens, it will costs banks more to borrow money and that "benefit" will be passed on to us, the consumers in the form of higher interest rates and inflation.