Unless you’ve been living under a rock the past few weeks you have undoubtedly heard about the United Kingdom’s decision to leave the European Union, referred to by the media as “Brexit”.
On June 23, a referendum (where everyone votes on a specific issue) over whether to stay in or leave the EU took place. Surprisingly, 52% of voters wanted to leave the EU, while the remaining 48% wanted to stay. The outcome of this recent referendum in the UK unsettled the global economy seeing as such a move is unprecedented in history. The US Federal Reserve has been cautiously watching from across the pond for a while now, and the Fed’s decision to not raise interest rates in June can be largely traced to unease over the UK referendum. Lower interest rates can translate to rising home prices as making it easier to borrow leads to an influx of potential home buyers, raising demand for housing. US mortgage rates are at the lowest they’ve been in over three years and probably won’t increase much in the near future amid the Fed’s deep-seated uncertainties regarding the global economy, only furthered by Brexit. Besides the cheapest borrowing we’ve seen in years, there are other factors driving up demand. Global corporations and wealthy foreigners will likely begin to pick the US over the UK as a more stable location to set up shop and or buy property, at least for the time being. “Demand for U.S. real estate could rise,” notes the National Association of Realtors Chief Economist Lawrence Yun. However, even with an influx of buyers due to rates and Brexit, low inventory and rising prices have held back sales, says Yun. What does this mean for you? If you’ve been thinking about buying a home, right now could be a great time in order to lock in the low rates we’re seeing. Give us a call today at 571-249-3551 to find out how you can take advantage of these attractive rates!