What does the S & P debt downgrade mean for interest rates?

The simple answer to the question of the effect of the US debt ratings downgrade on mortgage interest rates is that we don’t know. The trend of the market this week was down along with the stock market. The interest rates are the key piece to the slow but steady real estate market here in the Columbus, OH area. It will be interesting to see what happens with the debt being downgraded … will that mean that money truly flows out of US Treasuries pushing interest rates higher? What other locations will money flow to? This next week in the stock market will be interesting… not only for the market and our overall economy but also interest rates. We shall see…