What to do Now????

So, our credit rating was downgraded on Friday. All weekend long we heard about how mortgage rates, credit card interest rates and basically our entire lives were going to be more expensive. What happened? Money left the stock market, went into U.S Treasury bonds and mortgage rates fell. Why? The United States is not going to default on debt. It's the safest investment out there.

What will cause an increase in interest rates? The fear of inflation. How will we have inflation? If the country has continually increasing job growth and people spend money. Said it before, will say it again. Ironically, higher interest rates will probably accompany higher housing prices.

So where does this leave us? Low interest rates. Low housing costs. What should we do? Depends. It probably makes sense to refinance. It is time to buy? You betcha.