This last Friday, the Standard & Poor's Rating Agency lowered the long-term U.S. federal & Government Agencies from AAA to AA+  for the first time in U.S. history. The downgrade is contributed to the rise in U.S. Sovereign debt and negative outlook.What impact does this have on the housing market? Well, experts believe that over long term it can have significant effects. A number of Wall Street analysis are predicting that interest rates are going to increase in upcoming months which will in turn drive up rates on mortgage loans, car loans, adjustable rate loans,&  credit cards.
If you are planning to wait to buy a house, you may want to reconsider, as fixed rates are expected to rise too.
Foreign countries may require a 1% increase on debt owed by the U.S. which in turn would add an additional $1.4 trillion over 10 years. This will wipe out the entire deficit savings made by Congress.
As we watch the Stock Markets decline, many of us feel a little uneasy. It is a scary time for those of us that are not financially secure.
Billionaire Warren Buffett said in an interview with Bloomberg Television this weekend, "Standard & Poor's erred when it lowered the U.S. credit rating and reiterated his view that the economy will avoid a second recession. The U.S., which was cut Aug. 5 to AA+ from AAA at S&P, merits a 'quadruple A' rating."
Vanessa Grout, CEO and President of Douglas Elliman Florida tells the World Property Channel, "At this point in time, it is premature to forehow the S&P's U.S. credit downgrade will impact the real estate or mortgage industries.  Also signaling uncertainty is that Moody's and Fitch have stated that they have no immediate plans to change the U.S. credit rating. When the markets reopen this morning, there may be some insights, but again, at this juncture it's really tough to say."

As of today, S&P still has a Triple-A rating on Australia, Austria, Canada, Denmark, Finland, France, Germany, Netherlands, Norway, Singapore, Sweden, Switzerland, and the United Kingdom.

Courtesy of www.http://www.worldpropertychannel.com/