1. Moody’s downgraded U.S. debt affecting MCO performance. 2. Mortgage rates increased to 7.04%, impacting housing affordability. 3. Home sales hit a 30-year low in 2024. 4. Builders express pessimism due to high interest rates and costs. 5. Price cuts are rising, making the housing market more buyer-friendly.
The downgrade and rising mortgage rates can deter home purchases, negatively impacting MCO. Historical downgrades led to similar market downturns, as seen in 2011 after S&P's downgrade.
The downgrade directly affects mortgage rates and broader housing market trends, key areas for MCO's operations.
Immediate effects on mortgage rates and housing market dynamics may present short-term challenges for MCO. As observed in previous downturns, impacts can be swift and pronounced.