US mortgage rates jumped this week, climbing closer to 7%. The move follows last week’s rate hike from the Federal Reserve, and the downgrade this week by Fitch Ratings agency of US sovereign debt, and of Freddie Mac and Fannie Mae.
Credit downgraded largely due to the J6 insurrection. Great job MAGAts. May you never be able to afford a home.
While J6 did factor into it, the rating is on the governments ability to pay back its debt, aka to not default.
The bigger issue, in this context, that I’ve seen is the republicans playing with the debt ceiling and threatening to not raise it. This directly makes it more likely the US government can’t/won’t pay its debt off.
It’s mostly J6.
Countries with attempted coups aren’t stable investments.
Yeah, I’m really curious what this is going to do to the overall economy. Personally, I’ll definitely be spending way less on non-essentials once payments resume…
My prediction is that the entertainment and hospitality industries are going to be the first to have massive layoffs.
And a lot of the people who work for that industry are college students, which will accelerate the issue.
“The combination of upbeat economic data and the U.S. government credit rating downgrade caused mortgage rates to rise this week,” said Sam Khater, Freddie Mac’s chief economist. “Despite higher rates and lower purchase demand, home prices have increased due to very low unsold inventory.”
The survey includes only borrowers who put 20% down and have excellent credit.
That’s rough.
