Brexit & US Mortgage Rates
Due to Brexiit US mortgage rates are at historic lows.
Some economic experts think the effects of Britian’s exit from the European Union will only affect the U.S. economy for a short time. Others feel the affect could endure for much longer. Alan MacEachin, Navy Federal Credit Union corporate economist, says, “There could be a massive capital flight to safety, which implies a significant inflow of funds into U.S. Treasury securities, which could drive interest rates lower in the U.S. and also boost the value of the dollar.”
With the world’s economy in a bit of chaos over Brexit, investors are seeking a safe haven for their dollars. US Treasuries is the place they go in times like this. While that is bad news for people counting on the yields from their US Treasuries it is great news for folks looking to get a mortgage to buy a home.
As Treasury rates fall the rates associated with financing a home fall also. A year ago mortgage rates were 4.16%. The day after the British voted to leave the European Union rates fell to 3.6%. Click here to find out more.
Now is a great time to get yourself qualified and take advantage of these historic low rates on mortgages. It is also a great time to sell your home as we have more buyers than we have homes on the market.