Mortgage rates went up this week after the U.S. lost its top credit rating. This means it might cost more for people to borrow money to buy a house.
The average interest rate for a 30-year home loan is now about 6.86%, a little higher than last week.
A company called Moody’s said the U.S. credit rating dropped from the best level, AAA, down to AA1.
They are worried because the government owes a lot of money — more than $36 trillion!
Because of this, investors think it’s a bit riskier to lend money to the U.S. government. When investors want more money for lending, mortgage rates go up too.
Also, President Trump’s recent big spending bill might add almost $4 trillion more to the debt, which makes investors nervous.
Higher mortgage rates make it harder for people to buy homes. Many homeowners want to keep their old, cheaper loans instead of selling their houses, so there aren’t as many homes for sale.
The good news? There are more homes for sale now than last year, so buyers have more options.
And prices and sales are a bit slower, so you might not have to compete in a bidding war.
Mortgage rates depend on things like the economy and your own credit score.
If you have a good credit score, you get better (lower) rates. If your score is low, the rates might be higher.
So, if you want a mortgage, your credit score and the economy can change how much you pay each month.