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As was predicted by the U.S. government rating downgrade from AAA to AA+, unfortunately, the mortgage interest rate for the 30-year fixed increased from 6.81% to 6.9%. This increase pushes the median monthly mortgage payment to $2,192 for the typical existing single-family home and $1,905 for the typical condo.
In the short term, this is bad news for consumers looking to enter the late summer housing market. However, in the coming months, with inflation easing, one hopes the Fed will stop rate increases to the federal funds rate, which will lower mortgage interest rates in the fall and winter months. Remember that the U.S. dollar is the most powerful currency, and homeownership provides long-term wealth gains even amid temporary interest rate increases.
