Credit rating

Credit Rating

What is Credit Rating?

Credit rating is a measure of an individual's or organization's creditworthiness. It indicates the likelihood of defaulting on debt obligations. Credit rating agencies assign credit ratings based on various factors such as financial history, income, and debt-to-income ratio. A higher credit rating implies a lower risk of defaulting on debt obligations and vice versa.

US Mortgage Giants on Credit Watch

US mortgage giants Freddie Mac and Fannie Mae were put on watch for possible downgrade by Fitch Ratings. A downgrade is not expected to happen, as a deal to resolve the debt ceiling standoff continues to be worked out. However, this news has implications for home buyers who may be affected by changes in interest rates and mortgage availability.

What Does This Mean for Home Buyers?

Home buyers may be affected by changes in interest rates and mortgage availability as a result of the credit rating of mortgage giants such as Freddie Mac and Fannie Mae. A downgrade in their credit rating could lead to higher interest rates and stricter lending requirements, making it more difficult for home buyers to secure a mortgage. However, it is important to note that a downgrade is not expected to happen at this time.

In summary, credit rating is an important measure of creditworthiness that can affect interest rates and lending requirements. The credit rating of US mortgage giants Freddie Mac and Fannie Mae being placed on watch for possible downgrade has implications for home buyers, but a downgrade is not expected to happen at this time.