News about Britain's exit from the European Union has finally started to sink in. Now that the decision has been made, we can take a look at the impact of the decision on the US housing market.
One thing is for sure: Brexit will certainly have an impact on current mortgage rates. For quite some time now, interest rates have remained at historic lows, contrary to belief that they would rise in the first half of 2016.
Brexit's influence on mortgage rates?
In a recent Washington Post article it was explained that:
Brexit has spawned the recent bout of volatility in global financial markets. That has anxious investors scurrying for safety -- and few assets are safer than U.S. Treasuries. High demand for government debt pulls down interest rates.That all translates into ultra-low mortgage rates for American households. And with Britain voting for Brexit, they could go even lower.
In a post that the low rates caused by Brexit may be short lived, Trulia Chief Economist said.
While the departure of the UK from the European Union has driven down the 10-year bond, and thus mortgage rates, we expect them to rebound later in the year as uncertainty over the economic consequences of the departure lifts.
With low rates already a topic of discussion, Brexit almost guarantees that mortgage rates will continue to remain low in the next few months. Those individuals who are considering buying or selling for their dream home should think about acting now while rates remain low.
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