While we’re separated from the U.K. by an entire ocean, it still won’t stop ‘Brexit’ from having an impact on many elements of global and United States finance – which includes the real estate market.
Britain’s decision to leave the European Union (EU) has already caused great uncertainty throughout the world and is most likely the main reason the U.S. Federal Reserve decided not to raise the Federal Funds Rate this June.
This could possibly indirectly boost the U.S. housing market as interest rates dip to a three-year low. Current homeowners have used the low interest rates to their advantage and moved to lock-in rates and refinance their current homes.
Another instance in which Brexit could indirectly impact the housing market? Wealthy foreigners could possibly be considering selling their U.K. properties and buying homes in the United States. According to Lawrence Yun, of the National Association of Realtors:
“[The U.K.]…it becomes [a] less attractive place to set up offices to conduct global business. Therefore, demand for U.S. real estate could rise if global investors view America as open to global business.”
While there are currently no clear answers to the questions brought up by Brexit, we’re always here to help provide answers and solutions for home financing or refinancing. Talk to one of our mortgage bankers today about the possibility of refinancing and learn how we can exceed your customer service expectations.