U.S. Credit Downgrade, Rates Dip

Posted: August 10th, 2011 by Just Real Seattle

While the long term impact of the U.S. credit downgrade from AAA to AA+ rating is unclear at best, the immediate outcome was quite favorable to mortgage lending. Interest rates fell yesterday to their lowest levels this year or 3.88% for a 30-year fixed rate FHA mortgage.

The credit rating agency Standard and Poor’s (S&P) downgraded mortgage finance giants Fannie Mae and Freddie Mac to AA+ on Monday.  ”The downgrades of Fannie Mae and Freddie Mac reflect their direct reliance on the U.S. government,” S&P said in a statement.

It remains to be seen what, if any, affect the downgrades will have on mortgage interest rates. Some speculate interest rates will spike, yet immediate market reactions range from muted to favorable. One thing is certain, mortgage interest rates are very unlikely to improve. Only time will tell what rates will do in the coming weeks and months ahead.

Leave a Reply

justrealseattle metropolitan Seattle Real Estate
FirstLast
Helps us to help you by knowing your neighborhood.
image description
Receive a
complimentary
Just Real Seattle

Home Packet.
Selling PacketBuying Packet
Yes, I'd like to receive your newsletter.

We strongly disapprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle top five deals
FirstLast
image description
Receive a
complimentary
Just Real Seattle

Interested in knowing what the last five top
residential real estate deals were in a specific neighborhood? Just specify your neighborhod of choice and we'll send you a complimentary report.

Yes, I'd like to recieve your newsletter.

We strongly dissaprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle metropolitan real estate stats
FirstLast
Helps us to know your neighborhood.
image description
Receive a
complimentary
Just Real Seattle
Real Estate
Stats Report.

We pride ourselves on being your "local economists." Providing you with current inventory and pricing data to help you make an educated and informed decision about the selling or purchasing your home.

Yes, I'd like to recieve your newsletter.

We strongly dissaprove of spam. Please know that your
email address and information will be used with the utmost respect.

Close
justrealseattle newsletter

Info you can use... Local Real Estate news,
lending info, home tips, property profiles, neighborhood happenings, local culture and more!

Close