Mortgage rates cross back over 7% after U.S. credit downgrade

[LetMyPeopleVote]

Interest rates are going up due to the credit downgrade and concerns about increase deficits

Mortgage rates cross back over 7% after U.S. credit downgrade www.cnbc.com/2025/05/19/m... #residential #RealEstate #housing

— DeSota Wilson (@desota.bsky.social) 2025-05-19T20:07:57.125Z

https://www.cnbc.com/2025/05/19/mortgage-rates-us-credit-downgrade.html

After several weeks of sitting stagnant, mortgage rates surged higher Monday following Moody’s decision to downgrade the U.S. credit rating.

Bond yields rose after the late Friday announcement, and mortgage rates loosely follow the yield on the 10-year Treasury.

The average rate on the popular 30-year fixed loan hit 7.04% on Monday, according to Mortgage News Daily. That is the highest level since April 11.

“The average mortgage lender had to account not only for the market movement in Friday’s closing minutes, but also to the additional weakness seen this morning. That makes for a fairly big jump, day-over-day, but it does very little to change the bigger picture,” said Matthew Graham, chief operating officer at Mortgage News Daily.

The April surge in mortgage rates did have a direct effect on the housing market, causing it to pull back right in the heart of the usually busy spring season. Pending sales of existing homes in April, counted by signed contracts, dropped 3.2% compared with April of last year, according to Realtor.com.

Homebuilders also noted a steep drop in demand in April. Homebuilder sentiment is now at the lowest level since the end of 2023, according to the National Association of Home Builders’ monthly index.

[Tarzanrock]

1. Probably not a whole lot of summer construction jobs in the housing market ...

this Summer in rural America -- so says my crystal ball. Thanks, Turd. Just wait until July and August when the effects of those insane Turd tariffs hit Main Street America.

[Johonny]

2. Attacking Beyonc will fix this

Trust me.

[BootinUp]

3. Is it ok to laugh?

[unblock]

4. The Moody's downgrade is not really to blame

Modestly confirming what s&p and fitch concluded years ago. They were really just late to the party,

Consumer defaults are up , that's the driver.

[dutch777]

5. Another great Trump deal! All my contacts in the construction industry are screaming about high interest rates...

...threatening or killing projects they were hoping for or counting on. Increase in component costs and threat to elements of the workforce by Trump tariffs and ICE raids raising costs and labor availability issues. My wife works for a publicly traded company that does specialty software for contractors and they are cautioning investors at their quarterly meetings that guidance moving forward is highly uncertain due to all the economic turmoil caused by Trump policies and other off the cuff moves.

[moniss]

6. Years ago I said people should remember that bad things happen when rates

go over 7 and stay there. Hopefully we can stay out of double digits.