A10F03B49704A9555CB18D6BD506641C

Brexit 1 Month Later The Impact On Mortgage Rates

Dated: 07/25/2016

Views: 25

Brexit 1 Month Later: The Impact on Mortgage Rates | Keeping Current Matters

Just over a month ago, the United Kingdom decided to withdraw from the European Union in a decision commonly known as Brexit. At that time there was a lot of speculation on how that decision would impact the U.S. residential mortgage market. Today, we want to look at the impact of the first 30 days.

Most believed that the Brexit decision would drive mortgage rates down and keep them down for some time. As CoreLogic reported:

 “First-time buyers can count on continued low mortgage rates to help with affordability issues. Similarly, re-setting adjustable rate loans will have less of a rate shock, and in some cases may even go down.”

What has actually happened?

Initially, rates did fall. However, Freddie Mac has reported that rates have stabilized and have actually increased marginally each of the last two weeks. This prompted Freddie Mac Chief Economist Sean Beckett to say:

“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their near-record 30-year mortgage rate lows.”

And, Capital Economics Property Economist Matthew Pointon believes rates will continue to increase:

“Given we expect Brexit will have a minimal impact on the U.S. economy, we see no reason to change our forecast for mortgage rates to reach 3.85% by the end of this year, and 5.0% by the middle of 2018.”

We will continue to follow the effect of Brexit on the U.S. housing market. But for now, it appears the impact is not as dramatic as some thought it could be.

Blog author image

Thad McIntyre

Thad McIntyre, Broker/Owner of PowerMark Properties, is a high-energy and dedicated Realtor who believes it is his duty to give back to the community on both the professional and personal level. Thad ....

Latest Blog Posts

How To Decorate For Fall On A Budget

I had fully intended on sharing a great before and after with y’all today, but sometimes life happens.  It looks like I’ve got a case of the sickies to start off the week.  So I’ll

Read More

11 Mortifying Home Buyer Behaviors That Make Real Estate Agents Cringe By Cathie Ericson Aug 3

11 Home Buyer Behaviors That Make Real Estate Agents Cringe | realtor.com® 11 Mortifying Home Buyer Behaviors That Make Real Estate Agents Cringe By Cathie Ericson |

Read More

A Dictionary For Home Buyers

Mortgage Terms Explained, From ARMs to PointsBy Laura Winter | Jan 4, 2016 PeskyMonkey/iStock.comMortgage terms are like most industry terms: confusing as heck if you're not in the

Read More

Top 5 Reasons To Sell This Fall

5 Reasons You Should Sell This Fall!800SHARES63553271372Here are five reasons why listing your home for sale this fall makes sense.1. Demand Is StrongThe latest Buyer Traffic Report from

Read More