The fiscal cliff is now only days away, but analysts with Compass Point Research & Trading say it's still possible for Congress and the president to work something out to avoid sweeping tax increases and spending cuts all at once.
The housing sector has been watching Congress closely with the mortgage interest deduction still a concern and tax cuts threatening a housing recovery.
Compass Point researchers write: "For practical purposes, the negotiations have now moved from the House to the Senate. We were slightly encouraged by a number of influential Republican Senators taking to the airwaves on Sunday to detail their support for a last minute compromise. Both Sen. Kay Bailey Hutchison, R-Texas, and Sen. Johnny Isakson, R-GA, stated their preference for a deal -- even if it meant increasing tax rates on the nation’s highest earners."