The David Greene Show Mortgage Monday - What The US Credit Downgrade Means for You | Episode 64
8 snips
Jun 9, 2025 
Christian Bachelorette, a loan officer at The One Brokerage, joins to discuss the recent downgrade of the U.S. credit rating and its immediate effect on mortgage rates. He explains how this credit change mirrors personal credit scores, signaling potential economic instability. The conversation dives into broader economic implications for real estate, including international trade shifts and rising housing costs. Bachelorette also shares insights on navigating such challenges and highlights emerging markets where investors can still find opportunities.
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US Credit Downgrade Explained
- Moody's downgraded the US credit rating for the first time from AAA to AA1 due to rising budget deficits and debt interest payments.
- This downgrade signals a weakening trustworthiness in US debt repayment and may affect mortgage rates upward.
Credit Rating Affects Mortgage Rates
- A country’s credit rating is like a personal credit score; a downgrade means higher borrowing costs.
- If major bond holders sell US debt fearing default, bond yields and mortgage rates will rise.
Dollar’s Reserve Status Impact
- The US dollar’s status as the world’s reserve currency allows the US to 'print money' and borrow cheaply.
- Emerging currency blocs like BRICS challenge this, which could affect US economic leverage and debt costs.