What You Should Understand About Brexit and Mortgage Rates

What You Should Understand About Brexit and Mortgage Rates

 



Much to the world’s surprise, Britain has voted in favor of leaving the European Union.  Here is what you should understand about Brexit, and how it affects mortgage rates in America.

Even before Brexit, 30-year fixed-rate mortgages had sat around 3.7 percent, the lowest they’ve been in almost three years.  Britain’s decision to leave the EU has already driven these numbers down to 3.5%!  Other interest rates have seen a similarly generous drop since the vote on June 24th.

Now is the time to buy!

While interest rates are reaching historic lows in the wake of Brexit, this is expected to be a short-term dip.  Economists forecast a significant rebound, with rates as high as 4.8% by this time next year.  If you’ve been thinking of buying a home, there’s no time like the present.  If you already own a home, it may be a good time to refinance.

The United States is no longer an island.  Mass Communication and the Internet mean global circumstances will have a much greater influence on rates than they have in decades past.  We are part of a much bigger picture now.  The market is as turbulent as it’s ever been, and keeping an eye on world events can help you better understand the ebb-and-flow of interest rates here at home.

 

Johns Creek Real Estate Agent