While politics are more of a hot button than ever before and Americans are currently caught in the cross fire of Congressional finger-pointing; we still need to get perspective about how the country’s recent downgrading by Standard and Poor’s is really affecting you and getting a mortgage.
Whoever you want to “blame” for the downgrade, S&P is only one of three companies that provides credit ratings. Much like Experian, TransUnion, and Equifax are our mortgage industry go-to sources for a client’s credit score as they help to determine interest rates…S&P isn’t the only game in town and their peers are still standing firm on the premium credit status for the United States.
And another thing! In comparison to other nations issuing credit, we are still the gold standard upon which others are based. Therefore, the market for our debt still strongly mitigates most of the fears S&P may have instigated.
At the end of the day, amidst all the panic, interest rates actually went down over this past week; so what’s that saying? That’s reiterating that the market will be a main driver in helping to set the interest rates.
Let’s just de-twist the proverbial panties and take a deep breath. Your 401k may have been all over the map this week, but we’ve got money to lend at reasonable rates in a buyers’ market. How’s that for perspective?