US debt downgrade could mean rate hikes for all
Downgrade on US debt could translate into higher interest rates on credit cards and mortgages
If investors get skittish and Treasury prices reverse course, that could send the interest rate on Treasury bonds up. Essentially, the rate, or yield, would climb in order to make the bonds more attractive to investors. That could lead to higher borrowing rates for consumers, because the rates on mortgages and other loans are often pegged to the yield on Treasury bonds.
Not every type of consumer borrowing has a direct tie to the government's credit rating, but there are potential ripple effects for individuals.
-- Mortgage and home equity loans
S&P's downgrade may have several implications for homeowners.
For starters, early Monday S&P downgraded the credit ratings of mortgage giants Fannie Mae and Freddie Mac, which are both backed by the U.S. government. That could mean higher mortgage rates for new borrowers. Freddie and Fannie together own or guarantee about half of all mortgages in the U.S.
Source - Associated Press
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In the U.S., lots of property buyers used ARM (adjustable rate mortgages).
Singapore's interest rates are highly correlated to the U.S.'s.
Property speculators who bought condos using SOR home loans, good luck to you all
Listen to lowly-educated property agents who said interest rates will not go up, at your own risk.
Property agents are the most fxxk-type assholes around. Only interested to close the sale.
Downgrade on US debt could translate into higher interest rates on credit cards and mortgages
If investors get skittish and Treasury prices reverse course, that could send the interest rate on Treasury bonds up. Essentially, the rate, or yield, would climb in order to make the bonds more attractive to investors. That could lead to higher borrowing rates for consumers, because the rates on mortgages and other loans are often pegged to the yield on Treasury bonds.
Not every type of consumer borrowing has a direct tie to the government's credit rating, but there are potential ripple effects for individuals.
-- Mortgage and home equity loans
S&P's downgrade may have several implications for homeowners.
For starters, early Monday S&P downgraded the credit ratings of mortgage giants Fannie Mae and Freddie Mac, which are both backed by the U.S. government. That could mean higher mortgage rates for new borrowers. Freddie and Fannie together own or guarantee about half of all mortgages in the U.S.
Source - Associated Press
________________________________________________________________________________________________________________________________________________
In the U.S., lots of property buyers used ARM (adjustable rate mortgages).
Singapore's interest rates are highly correlated to the U.S.'s.
Property speculators who bought condos using SOR home loans, good luck to you all
Listen to lowly-educated property agents who said interest rates will not go up, at your own risk.
Property agents are the most fxxk-type assholes around. Only interested to close the sale.
:(
