US Credit Rating and Home Buyers: What You Need to Know.

The US is at risk of a credit downgrade as negotiations over the debt limit continue in Washington. Credit agencies warn that the nation's AAA rating could be downgraded as the US approaches running out of cash and defaulting on its $31.4tn debt. A credit downgrade would have a material effect on interest rates, costing investors and everyday Americans potentially a lot of money. The Biden administration and congressional Democrats have called for swift bipartisan action to raise or suspend the debt limit, while some Republicans have opposed a debt limit increase without spending cuts attached. Treasury Secretary Janet Yellen warns the US will run out of money to pay its bills by June 5 if lawmakers do not raise the debt ceiling.