In an interdependent global economy, the U. S. often feel the effects of major market movements occurring in other countries. Additionally, our domestic economy can be affected by just the anticipation of foreign market movements. While Britain’s decision to leave the Europe Union was a major economic consideration for many of the world’s economies, the U.S. housing market, to date, has seen little in the way of major change due to Brexit. Many experts believe the economic fallout hype from Brexit was more anticipatory than reality. However, that’s not to say the forthcoming exit negotiations won’t yield changes in the coming two years.
As with any dynamic economy, Britain’s decision caused a minor fluctuation in mortgage interest rates, but nothing dramatic. Real estate analysts believe any affects are already wearing off a month after the vote. The mortgage rate remains under 4% with the 30-year-fixed hovering around 3.5% percent and the 15-year-fixed closer to 3% for 2016.
A Wall Street Journal survey of economists and industry leaders on the impact of Brexit on the U. S. found little to worry about. Most viewed Brexit as just a temporary pause in the process of economic globalization. If anything, this is good for the U. S. housing market. The long recovery from the 2007 real estate crisis is steady, which is good for homebuyers and real estate investors. Dramatic fluctuation one way or the other would be indicative of an unstable economy, and for the most part, the U. S. economy is faring well in an ever-changing world.
In short, Brexit, though a major global economic event still to come with its pending negotiations, in the big picture the U. S. real estate market will remain stable. Brexit aside, mortgage interest rates remain at historic lows which make it a great time for those considering buying a home.