So what does Brexit mean? Why is it important for me if I am buying or refinancing a home?
Let me give just a brief description of Brexit:
British Exit. Brexit. Britain decided to leave the European Union (EU). That’s it. A long shot referendum went to a vote and the British voters shocked the world – they voted to leave. Even Vegas odds makers had it at an 80% chance of staying in the EU.
If you want a vastly more detailed description, click on this link:
So Britain left. Big deal. How does that affect me? The exit has made global investors nervous and uncertain of the best investments for their money. With uncertainty, large investors normally look for safe low risk investments. That many times ends up with more investment in United States Treasuries and mortgage backed securities. That investment results in lower overall mortgage rates for us. This is a very simplified explanation, but good for those that don’t need the details. For those that do: https://www.washingtonpost.com/news/get-there/wp/2016/06/24/how-brexit-could-push-mortgage-rates-to-historic-lows/
As soon as they voted to leave, mortgage rates dropped by a quarter of a percent. Recently we have had a steady trendy down by another eighth of a percent. Effectively rates are .375% lower than right before the vote.
Even though they voted to leave, that doesn’t mean they have left. It is a tedious process that is predicted to last up to two years to accomplish – if they leave at all. In fact, with only one week after Brexit, analysts are already talking about the EU making some concessions to the United Kingdom about wooing them back; and the UK being receptive.
As of now we have favorable rates, amazing down payment assistance programs for both purchases and refinances (specifically for those still upside down in their home), steady home prices and an amazing team ready to help you navigate these great opportunities.
Give us a call. We love to help.