Brexit’s Affect on the U.S. Housing Market
Britain’s vote to leave the European Union largely impacted the global market, especially the housing market. Although the impact was wide-spread, the U.S. economy is still relatively sound. In fact, Brexit’s affect on the U.S. housing market is all-time low mortgage interest rates!
With the global changes, loans just got incredibly cheap, yet it’s unsure how long it’s here to stay. Mike Fratantoni, chief economist at the Mortgage Bankers Association said, “Our best guess at this point is that the impact on the mortgage market will be to keep rates lower for longer.”
Although this affect on the housing market could be long term, interest rates could still possibly rebound a little bit by the end of the year according to Greg McBride, chief financial analyst at Bankrate. In fact, Federal Reserve Board Chair, Janet L. Yellen said they believe that things will eventually turn around although they “are taking a cautious approach…to make sure that expectation is borne out.”
No one really knows what Brexit’s affect will be long-term. Although there are many ways it can turn out, it shouldn’t really alter your home buying/selling decision today. According to Trulia’s Chief Economist Ralph McLaughlin the immediate affect of this vote is cheaper money.
Take advantage of it! It’s impossible to guess where things will be in the next few years, but if you can get cheaper interest rates now on your mortgage, why wait?!
Overall, the U.S. housing market is continuing to make a climb out of the recession. In fact, more people are buying homes versus just refinancing, which is a sign of economic growth. With mortgage rates at all-time lows and the job market increasing, the U.S. economy is still on the rise, and this Brexit vote just make buying a home a lot cheaper!
As interest rates continue to drop in the coming weeks, be sure to jump on the opportunity while it lasts!
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