If the credit rating agencies downgrade the Federal US credit rating, then this has huge impacts in the mortgage industry. As borrowing becomes more expensive in the US, then this will make borrowing money for mortgages more expensive.
The rating agency effectively gave Washington a two-year deadline to enact meaningful change, just days after House Budget Committee Chairman Paul Ryan and President Barack Obama each outlined their plans for slashing debt. S&P nonetheless kept its best rating, AAA, on the U.S.
Read it allRelative to Triple-A-rated peers, the U.S. has very large budget deficits and rising government indebtedness, and the path to addressing those issues is unclear, S&P analysts said.