Fitch Ratings supports Fannie Mae and Freddie Mac default ratings

Fitch Ratings recently reported it affirms the long-term default ratings for Fannie Mae and Freddie Mac, and anticipates their outlook to remain stable. Fitch has also announced it will keep the United States' debt rating at AAA, despite other agencies decreasing their ratings for the federal government's credit.

Fitch will revisit its rating decision at the end of 2011 to make sure that either Congress has implemented the promised $2.1 trillion in savings or the economy has not continued to deteriorate, Reuters reported.

David Riley, analyst for Fitch Ratings, told the news source that Congress must come to an agreement on the savings required to control the U.S. debt ratio in order to maintain the nation's AAA rating. Pierre Ellis, senior economist with Decisions Economics, said the Standard and Poor's downgrade was due to Congress's lack of a long-term plan for budget control, while Fitch sees more potential revenue sources for the United States.

"(Fitch) is putting a little more faith in the common sense of Congress and the administration with respect to getting the budget situation under control," Ellis told the news source.

Freddie Mac's U.S. Economic and Housing Market Outlook for August predicts interest rates will remain low, as refinancing will continue to grow in popularity among homeowners. The outlook noted that while the economy fails to increase its rate of recovery, borrowers are paying about $130 billion less in mortgage interest at an annual rate, which could help put money in consumers' pockets.  

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