Thanks Mike – the following is an email from one of our lenders, Mike Ferrell updating us on the recent downgrade…
From: Michael Farrell <MFarrell@gofirsthome.com>
Date: Sun, Aug 7, 2011 at 9:37 AM
Subject: US downgrade by S&P-from Mike Farrell
To: Jennifer Young
The unlikely became the likely as the S&P downgraded the United States from AAA status to AA+ status. One of the S&P’s criticisms of the recent debt ceiling increase compromise was that it didn’t address the Social Security and Medicare as well as not allowing for additional tax revenue. S&P also said the U.S. is likely to face a further ratings downgrade if the government continues to extend the Bush tax cuts for the wealthiest Americas.
Several analysts including Bernanke claim the downgrade didn’t tell us anything we didn’t already know. Other countries have been downgraded and are still able to borrow at low rates.  So what could the immediate impact be, well interest rates on bonds could rise, rates on mortgages and other loans also. It is possible that some state and local governments could also be downgraded and  large institutional investors that are required to hold highly-rated securities would have to re-evaluate their positions.  I will continue to monitor the reaction and possible implications over the next weeks and will update you.
Mike
Mike Farrell
Branch Manager
First Home Mortgage Corporation
 
Office: 571-399-5363
Cell: 571.214.6460