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%.
