Could Standard & Poor’s downgrade of U.S. debt and mortgage agencies Freddie Mac and Fannie Mae impact mortgage rates or the Arlington housing market?
While the stock markets are roiling, mortgage rates (which generally track 10-year Treasury yields) dropped to their lowest level of the year yesterday.
Homeowners with fixed-rate mortgages won’t see an impact. But if you have an adjustable rate or are in the market for a new mortgage for a home purchase, analysts say you could see a slight rise in rates over the next six months.
However, analysts note that a hit to consumer confidence could affect the housing market. The good news for Arlington home buyers and sellers is that our area economy remains one of the most robust in the U.S. and the Arlington housing one of the best with median prices up 5.3% compared to a year ago.
Here’s what three insiders are saying about the downgrades impact on mortgage rates and the housing market:
Lawrence Yun, chief economist for the National Association of Realtors, in the video above, says the downgrade “can damage consumer confidence and we need consumer confidence for people to enter the housing market.” On mortgage rates, Yun says, “I don’t see or anticipate any meaningful changes to mortgage rates."
Moody’s Analytics chief economist Mark Zandi says: "I don't think the S&P downgrade will have any meaningful impact on mortgage rates.”
Credit Suisse analyst Dan Oppenheim says: “Affordability has remained near its all-time most attractive levels for some time … but buyers are unlikely to move forward with plans while lacking confidence.”
If you want to know more about the area housing market, search homes for sale in Arlington or need help selling your home, feel free to contact me at Meg@MegRoss.com or 703-447-0970.
Meg Ross, the Orange Line Expert
Specializing in Arlington real estate along the Orange Line including Courthouse, Clarendon, Virginia Square, Ballston and Falls Church. Licensed in Virginia and Washington, D.C.
REALTOR®, Certified EcoBroker®, 2010 Angie’s List® Super Service Award Winner,
NVAR Top Producer 2008-2010, NVAR Multi-Million Dollar Sales Club 2008-2010
www.MegRoss.com
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