It’s been all over the news: Britain is leaving the EU, and many people are wondering how this change will impact the European economy. As the economy changes in Europe, it will have a domino effect on other countries as well. If you are planning to buy a home, is it possible that this change could affect your purchase?
What is “Brexit” and Why Does it Matter?
On Thursday, June 23rd Britain voted to exit the European Union. This Union is an economic and political agreement that has been in place among 28 European countries. The agreement allowed free movement and free trade between the countries that were within the union.
When the vote was happening, it wasn’t expected that Britain would choose to leave. So, the announced separation caused major waves in the European stock markets as well as stock markets around the world.
Changing Mortgage Rates
The truth is that the “Brexit” vote for Britain to leave the EU is already having an impact on the economic markets. Turmoil in the financial markets can be beneficial for mortgage rates, and we’ve already started seeing some changes in the rates.
Even though Europe seems far away, the financial markets are closely tied together. The Brexit vote resulted in falling mortgage rates, which is beneficial for potential home buyers. The day after the Brexit vote happened, the rates here in U.S. were down by as much as .125 percent. As the rates have continued to drop, they are approaching the all-time record lows that are below 3.5 percent.
Why are Mortgage Rates Dropping?
Since there is uncertainty in the British and European markets, it is causing investors to buy U.S. mortgage bonds. These investments appear to be safer because of the global financial changes that are occurring. The home loans in the U.S. have the strictest guidelines in decades, making them a great option for investments.
You Can Benefit from Lower Mortgage Rates
Right now is a great time to buy a home, because you can get financing at a low rate. If you have been thinking about buying a dream home for your family, then you need to take advantage of this unique situation to lock in the lower interest rates.
Or, you might consider the advantages of refinancing for a lower mortgage rate. Here is an example to help you understand the benefit of seemingly small changes in your interest rate: if you lock in an interest rate that is only .25% lower on a $300,000 mortgage, then your payment will be $42 per month lower. These savings can really add up over time!
Here at Duffy Realty of Atlanta, we always stay dialed into the changes in the real estate market. Right now is a great time to buy a home, and we are here to help. Call us to work with the leading real estate team in Atlanta: (678) 318-1700