Wednesday, August 10, 2011
US Credit Downgraded, Fed Holds the Line on Interest Rates
The S&P downgraded the US credit to AA+. It is a bump from the sterling AAA rating we used to enjoy and it could mean more costly mortgages. But the Fed said it will keep interest rates extraordinarily low until 2013. What does this mean? Well, it might turn out to be a wash. That is, the Fed might successfully counteract the effects of the S&P's downgrade from a consumer borrower's perspective. Mortgages may be getting harder to get as Fannie and Freddie feel a new pinch. Then, the programs available to teachers and other special mortgage programs may be more important. The goal will not be to get a great rate. Great rates will abound until 2013. The goal will simply to get a mortgage at all. Special teacher mortgage programs can help with availability. Search the site to see what your area offers.
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