Now that much of the dust has
settled and the panic has waned, let’s take a look at what impact
Britain’s exit from the European Union may have on the U.S. housing
The most immediate
impact of Brexit will be on mortgage interest rates. Interest rates have
remained at historic lows for the last several years. Contrary to what
many experts believed, rates have remained low throughout the first half
Possible impact of Brexit on mortgage rates?
In a recent article, the Washington Post explained:
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
That all translates into ultra-low
mortgage rates for American households. And with Britain voting for
Brexit, they could go even lower.”
However, the lower rates caused by Brexit may be short lived as Trulia Chief Economist Ralph McLaughlin pointed out in a recent post:
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
are already at historic lows. The UK’s exit from the EU almost
certainly guarantees they will remain low (and possibly go lower) over
the next few months. If you were thinking of buying your first home or
trading up to the house of your dreams, this may be the time to act. The
cost of money may never be better for a potential buyer.