Post-Brexit, now what?
Home loan rates are at a low point. Most lenders are offering conventional 30-year fixed rates in a range of 3.375–3.5% on top tier scenarios at the moment. When Britain voted to exit the European Union (or, Brexit) on June 23, markets around the world felt the effect. Homebuyers and homeowners here in the U.S. held their breath as they watched to see what would happen to the low-trend in mortgage rates.
Senior Mortgage Loan Advisor and expert, Grant Norris share’s his take on the market trend Post-Brexit:
Loan rates are influenced by economic news here at home as well as circumstances around the globe that make news headlines. Global instability of any kind, including the mere uncertainty over the impact of Britain’s decision on the global economy, has caused investors to move money out of riskier stocks and into more stable or safer investments, including Mortgage Bonds here in the U.S.
Home loan rates are tied to Mortgage Bonds, so when Mortgage Bonds improve, home loan rates typically do as well, just like they did after Britain’s historic decision. The reality is, we simply don’t know how long this rate opportunity will be available.
Essentially, “global growth concerns” remain the driving force behind the long-term trend toward lower rates here in America. Yet don’t forget about the volatility of the markets here at home, especially mid-stride in an election year. Amid these turbulent times, periodic corrections toward higher rates can and will happen.
So what does that mean to homeowners and homebuyers?
If you have plenty of time and don’t mind losing some ground, set a limit as to how high rates could go before you’d lock to avoid further losses. And then wait it out, hoping to never see that limit.
If you’re on the fence, and time is of the essence, now is a good time to look for lock opportunities. Rates have been moving lower or sideways repeatedly, and they’ve begun to move back up without any sort of consistent pattern.
As with all Real Estate matters, depend on your agent to be the expert. I am here to help. Real Estate agents and mortgage advisers are here to guide you through the process of financing, refinancing, or selling your home. Let’s setup a time to discuss your options.