Tue May 20 17:30:00 UTC 2025: ## Mortgage Rates Spike Above 7% Following Moody’s U.S. Credit Downgrade

**[CITY, STATE] – [DATE]** – Mortgage rates climbed sharply today, surpassing the 7% mark, in the wake of Moody’s decision to downgrade the U.S. government’s credit rating. The move by Moody’s, which lowered the sovereign credit rating from AAA to Aa1, adds to existing economic uncertainty and has rattled financial markets.

Moody’s was the last of the major credit rating agencies to remove the U.S.’s coveted triple-A rating. S&P Global Ratings had previously downgraded U.S. debt back in 2011.

This latest downgrade by Moody’s signals concerns about the long-term stability and management of U.S. debt. While the immediate impact is felt through rising mortgage rates, experts warn that this could also lead to higher borrowing costs across various sectors of the economy.

The rise in mortgage rates will likely further dampen the already cooling housing market, making homeownership less affordable for potential buyers.

_This article was written with information provided by MarketWatch reporter Aarthi Swaminathan. Copyright © 2025 MarketWatch, Inc. All rights reserved._

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