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Bad News Always Comes On a Friday

By Mike Marroquin

Mortgage and Lending with Taylor Morrison Home Funding NMLS#: 1054841

August 06, 2011 05:55 AM

Bad news typically comes on a Friday afternoon. Just like layoffs are done on Friday afternoons (so I've heard anyway), bank seizures and closures are typically done on a Friday afternoon ... And now, for the first time in history, the United States credit, on this Friday afternoon, has been downgraded. So much for happy hour.

Many have been speculating for some time now that this may happen at some point, causing interest rates and mortgage rates to rise. We shall see if this time is now beginning.

Any thoughts on where this takes interest rates from here? I have no predictions other that, probably not lower.

visit: http://www.equityinmotion.net for local san diego and chula vista real estate and financing info.

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Mihir Gandhi

First Team Real Estate - Placentia, CA

Real Estate in Placentia - North O.C. CA

I seem to agree with you Michael - don't think it is going to go lower!

Aug 06, 2011 06:03 AM

Mike Marroquin

Taylor Morrison Home Funding - Henderson, NV

@ Christina

I tend to agree with you. I think interest rates will be more inclined to rise if there is another downgrade several months down the road or if another rating agency also downgrades. More shorter term though, it seems logical that we are in the bottom of interest rates.

As for market selling, there will be selling. We can only wait and see to what extent. I'm sure it will be big news at first and then subside. Many Bond mutual funds are required to hold AAA rated bonds only. These funds will be forced to sell their non AAA rated bonds according to their mandate. Other than that, I'm sure most bond holders are not worried about being paid on U.S. Bonds at all.

Aug 06, 2011 08:16 AM

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Mike Marroquin

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