Aug 9, 2011 | 01:08
Fannie Mae and Freddie Mac downgraded.
Aug. 8 - The U.S. credit rating downgrade has also dragged down the country's two biggest government sponsored mortgage lenders. Deborah Gembara reports.
The U.S. credit rating downgrade has also dragged down the country's two biggest government sponsored mortgage lenders. Fannie Mae and Freddie Mac, holder of almost half of all U.S. mortgages, saw its triple-A credit rating cut by Standard and Poors on Monday. American home buyers could see higher interest rates. Just how high and for how long still isn't clear. Former White House economic advisor Glenn Hubbard. SOUNDBITE: Former White House Economic Advisor Glenn Hubbard saying: "Clearly ratings downgrades are not good for interest rates and mortgage rates but the bigger fear for the housing markets is probably what's rippling through consumer confidence and the equity markets, so Fannie and Freddie downgrades will have some effect but I think it's more modest than these macro effects from lost confidence." The ratings agency based its decision on the view the U.S. hasn't done enough to combat the budget deficit. Deborah Gembara, Reuters.