As you know, the vote is in and Britain is in the process of removing itself from the European Union. Although there have been impassioned ramifications in Britain, we here in the U.S. are wondering “How will this affect us?”
Well you may have noticed that in the first half of 2016, mortgage rates that were predicted to rise throughout this year have pretty much stayed the same. In the three weeks prior to the Britain vote, mortgage rates plunged to their lower level in three years. Freddie Mac is showing that the average interest rate is hovering around 3.54 percent for a 30-year conventional loan when it was 4 percent a year ago.
Mortgage applications have increased 17 percent according to the Mortgage Bankers Association and refinancing is up 10 percent. With the resulting yes vote from Britain to leave the EU, the global markets have become volatile. And this volatility have resulted in ultra-low mortgage rates for Americans. Word is that because of the Brexit, rates could drop even lower.
What does this mean for San Antonio buyers and sellers? It means that if you were thinking about buying a new home, and needing to sell your existing home, now would be the time to do it. Trulia’s Chief Economist Ralph McLaughlin doesn’t expect the shock from Brexit to last more than the end of this year. So the clock is ticking.“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,” McLaughlin said.*
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*See more at: http://www.trulia.com/blog/trends/brexit-ushousing/#sthash.w7vIsrmL.vvP97xf1.dpuf