Because of the down-grading and the interest rate increases that will inevitably follow, I contacted my lender and refinanced my 30yr Fixed (5.875%) to a 15yr Fixed (4.25%), which locks us in at a stupid low rate and will save us $240,000 over 30yrs for only an extra $300/mo. Time to try to lock my variable rate second mortgage (currently at 2.5%) before I get screwed on that.
If you were thinking of doing a Refi or a larger purchase with a loan, consider looking into it soon. For a Refi, even if you're underwater on your home, many lenders can still Refi to a different program at a lower interest rate which might save you money in the long term. It took me 10 minutes to call and get my options and another 10 minutes to secure the rate before Monday. Also, if you have anything with adjustable rates, keep an eye on them since things are likely to change.
I listened to an economist yesterday and they said the downgrade is going to drive up interest rates on everything - cars, homes, student loans, credit cards, etc. In addition to borrowing getting more expensive, he suggested the cost of goods is going to be more expensive too since companies borrow money to help produce products. Another reason products might get more expensive is because of a lack of capital (due to the suspected stock sell-off) might force even more debt on producers. He also thinks our ratings will be lowered even further, forcing rates higher.
