Provided by Mitch Wilcox
Mortgage Consultant with Bank of Oregon

“What’s Up With US Debt?
From Sigma Research…
Tuesday, August 02, 2011

“There still is the media firing up the flame of a possible down grade of US debt by S&P. We have no idea about what the rating agency will do but in the end it won’t matter much. As we noted yesterday, a down grade of US debt essentially down grades all other sovereign debt whether or not S&P agrees. The US is still the strongest credit in the world, and will stay that way. Although the recent debt ceiling debates were painful to watch, it is the beginning of a serious debate and major decisions that eventfully will shrink government, lower spending and increase revenues. Eventually taxes will increase (or some forms of increased revenues), spending will be cut, Medicare and Social Security will be revamped. Painful but necessary; as long as the can gets kicked down the road the deeper the hole the US falls into. It is now up to American voters; in 2012 the election results will set the path to a balanced budget (over time) or send the US into debtors prison (over time).”

I have mentioned before that it’s going to come down to us voters to get US debt under control and you can best express this at the ballot box and in your communication with our elected officials.

So far, mortgage interest rates have not been directly impacted by the US debt/budget issues. Rates continue to remain low based on overall economic news….as usual. It is not likely we will see significant rate movement until or unless the economy reacts or world events cause movement.

For certain we are still in a positive environment for home buyers…low values and low rates won’t last forever so once again, if you’re inclined, get out there and get pre-approved (contact me!) and get in the game!

Until next time….”