The Standard and Poor’s U.S. credit downgrade seriously shakes the confidence that a recovery in the U.S. housing market will develop anytime soon, according to a new Housing Predictor poll.
More than 2 out of 3 respondents or 67% said that the S&P downgrade shakes their confidence that a recovery in the housing market will develop anytime soon.
The poll was taken over the last two weeks, during which time the nation’s two other largest credit rating agencies, Fitch and Moody’s said that there ratings on U.S. credit would remain at AAA for the time being.
However, S&P is the oldest ratings agency and despite mistakes it made by missing calls on financials leading to the financial crisis on securities related to mortgage backed securities, the firm is still regarded by many financial analysts as the most powerful ratings agency in the industry.
The disappointing poll outcome comes at a critical time for the housing market in the midst of summer, which is typically the busiest selling season of the year. Home sales have declined in three out of the last four months, according to the National Association of Realtors.
However, record low mortgage rates may have a major impact on home sales as they hover at new low rates in the midst of summer, which should boost home sales in at least some areas of the country as the real estate market struggles to recover from the most severe downturn in modern times.
Answer the New Predictor Poll
Does the U.S. credit downgrade shake your confidence that a recovery in the housing market will start to develop soon?
Yes 67% No 33%
To see the previous poll results click here.