After the giant, Standard & Poor's also takes it out on its children. The agency that last Saturday cut the rating of the United States for the first time in history today did the same thing with Fannie Mae and Freddie Mac, whose ratings were downgraded to "Aa". These are the two softly named mortgage giants that came under the control of the US government during the 2008 crisis.
The downgrading of Freddie and Fannie was therefore absolutely predictable, considering the direct connection with the fate of the American state. What most interests Americans, however, is the reflection that all this could have on the already bad real estate market. It is not clear whether and what effects the new S&P decision may have on mortgage costs. Given that yields on US government bonds remain low, at least for now, a spike in loan rates seems unlikely, according to CNN.
