S&P vs. US debt, what will happen to mortgage rates
I'll skip commenting on whether S&P downgraded US debt as payback for being hauled before Congress after giving AAA ratings to the toxic waste otherwise known as CDO's of mortgage backed securities or whether they may or may not have $2 Trillion dollar mathematical error or whether those rascals in Washington will ever get serious about addressing our nation's financial issues. (Oops, it looks like that was a comment.)
But what will happen to mortgage rates as a result.
The only good news from yesterday's drubbing in the stock market was that US Treasuries were up sharply (which means that interest rates declined) and what does that really say about S&P's decision when investors put their money into what they believed were safe havens.
Bottom line, mortgage rates declined by about an 1/8 to a 1/4 yesterday and are sitting at approximately 4.25 percent for a 30 year fixed rate loan.
So for anyone considering buying a home in Charleston or refinancing their current mortgage, right now rates are definitely incredibly favorable but I would expect that there is no way they can stay this low for very long,