Welcome again to my blog and thanks for visiting. I want to inform everyone on what the whole “Brexit” vote means for the U.S. housing market. Below is a blog from Keeping Current Matters that I wanted to share with all of you so that you know exactly how this will impact rates.
“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 market.
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 of 2016.
Possible impact of Brexit on mortgage rates?
In a recent article, the Washington Post explained:
“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.”
However, the lower rates caused by Brexit may be short lived as Trulia Chief Economist Ralph McLaughlin pointed out in a recent post:
“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.”
Rates 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.”
If you have been on the fence about buying a home or refinancing, then now is the time to start getting serious about pulling the trigger. If not, you will only cost you and your family more money. The higher that interest rates go up means the less of a mortgage that you will be able to afford. So if you were looking at $300k homes today and rates go up by .25-.5% then your purchasing power could be diminished and can prevent you from buying the home that you want.
So you want to pull the trigger and see what you can do with refinanicng or buying? This is what you need to do. Call me at 219-973-6644 and I can get some of your intial questions answered and work with you to reach your goals. You can also apply online through my website 24/7 at: The Rockstar Closer and click apply online at the top right. In order to stay up to date on interest rates, search homes and other useful real estate stuff, download my free mobile app at: The Rockstar Mortgage App for your mobile phone!
As always, thanks for visiting, don’t forget to subscribe and be on the lookout for my next blog coming to you next week. Have a Happy 4th of July, be safe and enjoy your time with your loved ones.