Unless you have been, quite literally, living under a rock the past few weeks, you have been hearing a lot about Brexit in the news. While a lot of the news is about ramifications for those living overseas and in the European Union, you are probably wondering how such a big international decision will affect us in the United States. Luckily for you, Brexit has provided American homebuyers with lower mortgage rates than ever before!
Dropping Mortgage Rates
One year ago, the average rate of a 30-year fixed mortgage was 4.08%. Since Brexit, the rate has tumbled down to only 3.48%, the lowest level it has been since May 2013. The drop has occurred as a result of the United Kingdom’s historic decision to leave the European Union, commonly known as Brexit. The benchmark for consumer loans in the United States is the 10-year Treasury, whose rates fell to a mere 1.45% last week in wake of the decision.
Not looking for a 30-year fixed mortgage and hoping to get a 15-year fixed mortgage instead? Brexit has helped you out as well. Rates have fallen from 2.83% to 2.78% last week. Anyone looking for a new home or to refinance the home they currently own should consider making a move soon to take advantage of the low rates.
Good News for the United States Real Estate Market
Experts, left reeling in the wake of the Brexit decision, have stated already that fallout from the Brexit vote will greatly help the United States real estate market as many foreign buyers look for stable and safe investments for their money. Homeowners in this country looking to sell may enjoy getting their desired asking price (or more) and also encountering less trouble trying to find a buyer with bank approval.
Over the past few years in the United States, low home inventory and high home demand have slowly pushed home prices throughout the country higher and higher every year, with home pricing increasing 5% from April 2015 to April 2016. Affordability has become an issue as banks have placed further restrictions on who they will lend money to. Potential homebuyers who have been suffering under rising home prices and strict lending requirements may experience much more success now that home loan rates have dropped.
Get in Touch with Colony Title To See How Low You Can Go
At Colony Title, we will help you through the process of getting your property’s title and help you take advantage of the record low mortgage rates to come. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.