Mortgage Rates Surge After Moody's Downgrade of U.S. Credit

SOURCE www.marketwatch.com
Mortgage rates jumped above 7% after Moody's downgraded U.S. credit from AAA to Aa1.

Key Points

  • Moody's downgraded U.S. debt from AAA to Aa1, leading to a surge in mortgage rates.
  • S&P Global Ratings had previously downgraded U.S. debt in 2011.

Pros

  • Provides information on the impact of Moody's downgrade on mortgage rates.

Cons

  • Higher mortgage rates may negatively affect borrowers and the housing market.