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Mortgage rates climb back above 7% after Moody’s U.S. debt downgrade

19 May 2025
in USA
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Mortgage rates climb back above 7% after Moody’s U.S. debt downgrade
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Mortgage Rates Surge Following Moody’s Downgrade

The average interest rate for a 30-year mortgage has risen above 7% for the first time since April, triggered by Moody’s downgrade of the U.S. credit rating due to growing debt concerns. Although the rate slightly eased to about 6.99%, elevated mortgage rates are expected to persist amid record-high home prices and a lack of affordable properties, with only 20% of homes listed being affordable for households earning $75,000. Experts anticipate limited market impact from the downgrade, but homebuyer activity may increase if rates fall below 6.7%.

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Tags: climbDebtDowngradeMoodysmortgageMortgage ratesRatesU.S
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