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Response by the Federal Reserve was essential: it reported rates to member institutions would continue at the current lows until sometime in 2013. Originally this seemed to trigger stock investors and the Dow reacted with optimism. But a short day later, investors determined the Fed was demonstrating that it didn’t assume economic progress to develop for another two years.

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The S&P downgrade itself gives two upsides. First, the reactions of the Fed, along with the reaction of investors rushing to the bond market, will hold interest rates low for a short time. This is great news for home buyers. However [url=http://www.mancityshopuk.com/fernandinho-jersey.html]Fernandinho Jersey UK[/url] , as described in my weekly newsletter Mortgage Market in Review, any recognized threat of inflation could disturb bond markets and trigger mortgage rates to rise.

Secondly, the S&P measures calls on policymakers to pass relevant deficit reduction that will strengthen the ratio between the national debt and GDP. While the S&P’s downgrade of the U.S. credit rating is likely to be wildly unpopular, it serves as a wake-up call for elected representatives to move outside of politics and participate in responsible [url=http://www.mancityshopuk.com/benjamin-mendy-jersey.html]Benjamin Mendy Jersey UK[/url] , fiscal action. Strengthening the national balance sheet has become a priority.

Does this news mean you can’t buy a home. Becoming a homeowner is probable in any market, if you have a strong financial plan and good mortgage planning. It also pays to have an experienced mortgage professional on your side who recognizes the markets. I can help you make sense of today’s economy, so you can form the best judgements for your future. Get in touch with me today!

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