If you thought the arguments in Washington about raising the U.S. debt ceiling would not have an impact on personal finances, you may need to think again if you are a homeowner or would-be homeowner.

An analysis by Zillow projects that if the U.S. winds up defaulting on its debt, mortgage rates could rise to 8.4%, "sending the mortgage payment on a typical home 22% higher by September….That would be on top of an 82% rise over the past two years."

And if that were to happen, it would not only discourage home buyers – especially first timers – but sellers as well, who might decide to stay put rather than moving on up. The higher rates "could send the market into a deep freeze," Zillow senior economist Jeff Tucker commented. "It would wipe nearly one-quarter of projected sales off the board in some months."