Mortage Rates: Impact of the US Credit Downgrade

No one really knows the answer, since this is the first time in history it has ever happened.  We are ostensibly in uncharted territory.  It seems the only certainty is that there will be further uncertainty.  If supply and demand and fundamental economic theory were the only determinants, interest rates should increase at least somewhat.  However, we live in an age where global factors play an important role in our internal economics.  Moreover, the federal government and the Federal Reserve have also played active roles in determining economic outcomes through policies, measures and counter-measures. 

Bottom line:  It's anybody's guess.

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