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The jury is still out on what the overall effects will be from Britain’s exit from the European Union. One thing seems certain, home mortgage interest rates will remain low, and may even decrease further in the short-term. Would that be “Ratefall” or “Lowrates”?
That is good news for consumers. With the fed expected to keep rates low, for now, the opportunity exists for refinances, and for those potential homebuyers who have been sitting on the fence, especially Millennials, to enter the home buying market.
This opportunity may not last long. More existing homeowners refinancing will remove those homes from the market. New buyers will put an increased demand on current housing stock, especially those at the more affordable end. These factors will tend to increase home values and their sale price making them a little more difficult to afford.
For existing homeowners, that is still good news as their home equity will increase, offsetting some of the short-term hits they may take in their retirement accounts and/or providing more money for a down payment on a new home.
Mortgage lenders should be actively working with Realtors and builders to spread the good word about the fantastic opportunities presented for home refi’s and purchases here in America as a result of Brexit.
It’s time to get America moving again; moving into new homes… that’s “Amentry.”
