Financial Fitness

Rates were supposed to go way up with the US losing it’s AAA rating, so did they?

It has surprised many “experts” that the rates have actually gone down with the downgrading of the US credit.

Why?  If you’re an investor, right now you’re looking for safety and US treasuries is still the safest bet even internationally. A second very safe investment is with FNMA or FHLMC loans (conventional loans for real estate) which are backed by the full faith and credit of the US.

As money has poured out of the stock market into treasuries and mortgage backed securities it has brought rates down to the lowest levels of the year.

No one knows how long it will stay here but to get an idea of where mortgage rates are headed keep an eye on the 10 Year T bond.