topic Re: Credit Downgrade Impact?? in Mortgage Loans

Credit Downgrade Impact??

MBOhio2 — Mon, 08 Aug 2011 16:35:35 GMT

For you that are mortgage and finance savvy, any thought on whether the recent downgrade on the US and consequent downgrade on Fannie and Freddie will have any impact on home buying, including lending standards, interest rates, etc? I did some quick searching, but didn't see much. Is there any chatter about what this may do, if anything, to mortgage lending and home buying?

We are building a house now and can;t lock in a rate yet and won't close until about December 2011, so I'm wondering what may happen.

Re: Credit Downgrade Impact??

wednesdayaddamsd — Mon, 08 Aug 2011 17:02:30 GMT

Oops. I just asked the same question basically.

Re: Credit Downgrade Impact??

MarineVietVet — Mon, 08 Aug 2011 19:59:30 GMT

@wednesdayaddamsd wrote:
Oops. I just asked the same question basically.

Hi wednesdayaddamsd,

Would you like me to remove that post so that answers won't be going to two different threads?

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Credit Downgrade Impact??

MBOhio2 — Mon, 08 Aug 2011 21:00:23 GMT

For those of you also interested in this topic, I just found this Yahoo Finance article, which actually lays out predictions in an understandable manner, though I have no idea how accurate the author's analysis is:

http://finance.yahoo.com/news/SP-Rating-Your-money-in-a-hmoney-388856032.html?x=0

Re: Credit Downgrade Impact??

wednesdayaddamsd — Mon, 08 Aug 2011 21:46:07 GMT

Thanks Marine, but I actually have a specific question that differs from the OP's. But thank you for asking!

Re: Credit Downgrade Impact??

joestay — Mon, 08 Aug 2011 21:50:16 GMT

Should I put off homebuying until a later time in 2012? Will mortgage rate increase a lot in the next couple of month?

Re: Credit Downgrade Impact??

sugarmagnolia23 — Tue, 09 Aug 2011 01:05:15 GMT

MB- Thanks for the article post, kept checking the credit in the news section for same topic-

Re: Credit Downgrade Impact??

MBOhio2 — Tue, 09 Aug 2011 18:25:51 GMT

I saw a few other articles that simply stated "mortgage rates could increase" but they gave no rationale for their prediction or what could actually cause the increase. The article that I posted is the only one I've found that backs up a prediction with facts and an explanation, and it suggests that rates shouldn't change much.

Re: Credit Downgrade Impact??

smackmaster2 — Tue, 09 Aug 2011 20:18:47 GMT

Two additional things have happened in the last few days...S&P also downgraded Fannie and Freddie...but today, Fed promised that they will not be rraising interest rates until 2013. Kind of a mixed bag. I think things will stay about the same in near term, but these low interest rates cant last forever.

Re: Credit Downgrade Impact??

MBOhio2 — Thu, 11 Aug 2011 14:24:30 GMT

Based on Bernake's statements yesterday, it sounds like we're definitely fine for the short term. I was just trying to prepare for any anticipated major changes in interest rates in the next few months. Since our house won't be ready for another 4 months, we can't lock in an interest rate yet and it's scary to think we're locked into a building agreement but that interest rates could shoot up and ultimately, have a huge impact on our mortgage payment. It sounds like that's not going to happen though, which is good

Re: Credit Downgrade Impact??

Booner72 — Thu, 11 Aug 2011 19:06:49 GMT

No one knows what will happen with the rates or housing prices. It is only an educated guess at this point. If you can get into a house now, you should. That's my advice at least.

Re: Credit Downgrade Impact??

MBOhio2 — Mon, 22 Aug 2011 14:22:17 GMT

We can't get into a house right this moment because we're building one that won't be ready until December. I was simply looking for educated guesses so we can plan as best as possible. Thanks.