The surprise victory in Britain of the campaign to leave the European Union may be spurring panic across the Continent, but “Brexit” has left U.S. home buyers with a very definable windfall: mortgage rates that are now the lowest they’ve been in more than three years.
We’ve already seen an immediate impact of Brexit on the mortgage market as the event triggered major declines in rates. The average 30-year conforming rate is around 3.5 percent, the lowest in more than three years and very near the lowest average rates recorded in late 2012.
Lower rates produce lower monthly payments. And the decline in rates means that the well qualified can afford an 8-percent higher price than they could at the beginning of the year. That increase in buying power is more than offsetting the impact of higher prices.
But not all parts of the residential real estate market will strengthen as a result of Brexit. Demand could soften in specific markets and segments that will be most negatively impacted by the economic difficulties coming from the U.K. tailspin.
To take advantage of these historically low rates, click here to contact one of our Stanford Mortgage Advisors to get pre-qualified, or re-finance your current loan.
Fortunately for us the markets where “Brexit” will have a negative impact are actually the coastal markets and not the areas I serve.
As for now, we have a nearly perfect scenario that sets us up for the best summer for residential real estate in a decade. If you would like to talk about your home buying options – call, text, or email me today!