Is Brexit Impacting the U.S. Housing Market?

On June 23rd, 2016, Great Britain voted to exit the European Union. This exit left many to wonder what’s next in both Great Britain and abroad. The formal “Brexit” won’t be final for years, however governments and investors everywhere are beginning to prepare. Here is what you should know about Brexit’s impact on the U.S. housing market.

Home Prices Dip

It can be expected that home prices may take a bit of dip, as buyers are less likely to offer over the asking price. Investors in the stock market have generally less money now than before the Brexit, however cheaper mortgages in the U.S. should provide some incentive to buy.

Lower Interest Rates

If we look at past trends, when the treasury rates fall – so do mortgage rates. As money left the U.K. due to fear and uncertainty, money came into the U.S. markets, which are currently more stable. This will lead to interest rates remaining at historical lows for the meantime.

Is it Safe to Buy or Sell a Home?

With all things considered, if you were looking into buying a home before June 23rd, don’t let Brexit stop you. Despite the tumultuous environment elsewhere, the U.S. economy has remained relatively stable especially when it comes to housing. U.S. job growth remains steady, and the unemployment rate low. If you are considering selling your home, you are also safe. Demand for homes still outnumbers supply, so sellers should expect a relatively quick turnaround if their house is fairly priced.

Looking into buying a home? Home Point Financial is prepared to help you with financing solutions. Contact us today to get started.