House Speaker John Boehner promised to hike the nation's borrowing limit, temporarily if President Obama will bargain on the budget and the White House agreed.
The Boehner proposal would put off default next Thursday by raising the borrowing limit for six weeks, if president Obama agrees to negotiations.
"And I would hope that the president would look at this as an opportunity and a good faith effort on our part to move half way. Halfway to what he's demanded in order to have these conversations begin," said Speaker Boehner.
"Halfway," because Tea Party republicans point out that the government shutdown continues over healthcare.
"When it comes to the issues dealing with Obamacare we're gonna continue to hold our ground," said republican Congressman Raul Labrador of Idaho.
If the Tea Party does not block the Boehner deal on the debt ceiling, President Obama would sign it
"Because he thinks we need to avoid default," said White House Press Secretary Jay Carney.
Default could drive down home sales, real estate agent Suzanne Des Marais warns.
"I worry about people changing their minds," said Des Marais.
"If they're nervous, if they don't have the stability in their jobs they're not going to go forward and purchase a home"
But when Treasury Secretary Jack Lew warned about default today, Republican Congressman Michael Enzi of Wyoming mocked him.
"The sky is falling and the earth will erupt. Wyoming families aren't buying these arguments. They're saying you can't spend more than you take in," said Enzi said.
But, with 7 days until default, a deal looks possible and with the two sides sitting down there's a chance they could also resolve the shutdown and reopen the federal government.