Uncle Sam’s Credit Downgrade Hits Americans in Pocketbooks

In Analysis by Michael Rae

Fitch’s downgrade of the U.S. government’s creditworthiness earlier this month is hitting Americans seeking to become homeowners squarely in the pocketbook.
That’s because mortgage rates have surged in response to the downgrade. Bankrate’s Jeff Ostrowski reports on what that means to today’s homebuyers:
A bond rating agency’s downgrade of U.S. government debt roiled markets—and created just one more reason for mortgage rates to stay firmly near their highest level in two decades.
Fitch Ratings announced late Tuesday it had cut the U.S. government’s credit grade one level, from AAA to AA+. On Wednesday, yields on 10-year Treasury notes peaked as high as 4.1 percent. The 10-year

Read more at The Independent Institute