KCM Crew, July 26th, 2016
|Just over a month ago, the United Kingdom decided to withdraw from the European Union in a decision commonly known as Brexit. At that time there was a lot of speculation on how that decision would impact the U.S. residential mortgage market. Today, we want to look at the impact of the first 30 days. Most believed that the Brexit decision would drive mortgage rates down and keep them down for some time. As CoreLogic reported:
What has actually happened?
Initially, rates did fall. However, Freddie Mac has reported that rates have stabilized and have actually increased marginally each of the last two weeks. This prompted Freddie Mac Chief Economist Sean Beckett to say:
And, Capital Economics Property Economist Matthew Pointon believes rates will continue to increase:
We will continue to follow the effect of Brexit on the U.S. housing market. But for now, it appears the impact is not as dramatic as some thought it could be.