Debt Downgrade Surprise: Even Lower Mortgage Rates?
At least one fear was not realized amid Monday's meltdown: the concern that mortgage rates would immediately shoot higher in response to Standard & Poor's downgrade of Fannie Mae and Freddie Mac, the government-sponsored entities that are the 800-pound gorillas of the mortgage market.
In fact, the initial response to Fannie and Freddie getting cut to AA+ from AAA was precisely the opposite. Mortgage rates were poised to continue declining.
HSH Associates, which surveys lenders, quoted the average 30-year fixed-rate mortgage at 4.44 percent Monday. "We expect to see rates go into the 4.30's by noon tomorrow," said Keith Gumbinger, of HSH Associates.
See the full story at CNNMoney.
Legitimate No-Money-Down Mortgages Still Available in Small Towns
Mortgage Interest Deduction: Housing Boon or Boondoggle?
Why Are So Many Real Estate Deals Falling Apart?
More from CNNMoney:
Stock Market Plunge: Not Just a Rich-Guy Problem
Your Money in a AA-Rated U.S.
Is My Emergency Fund Part of My Portfolio?