Brexit And How Its Affected Interest Rates

Dated: 07/26/2016

Views: 135

Brexit 1 Month Later: The Impact on Mortgage Rates | Keeping Current Matters

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:

 “First-time buyers can count on continued low mortgage rates to help with affordability issues. Similarly, re-setting adjustable rate loans will have less of a rate shock, and in some cases may even go down.”

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:

“Post-Brexit volatility tapered off over the last two weeks, allowing interest rates to bounce back a bit from their near-record 30-year mortgage rate lows.”

And, Capital Economics Property Economist Matthew Pointon believes rates will continue to increase:

“Given we expect Brexit will have a minimal impact on the U.S. economy, we see no reason to change our forecast for mortgage rates to reach 3.85% by the end of this year, and 5.0% by the middle of 2018.”

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.


Kim Powelson is a professional Colorado real estate broker Kim has been serving her clients for over 19 years in Denver, Colorado.  Kim serves all of the metro area including Cherry Creek, Aurora, Arvada, Westminster, Thornton and Greenwood Village.  If you are considering buying or selling in Colorado please give Kim a call 303-378-9029.  Or email Kim at Kim.powelson@gmail.com

Blog author image

Sheryll White

As a Full Time real estate agent for the past 23 years, Sheryll has helped hundreds of home owners in Colorado buy and sell their homes. Sheryll's easy going, no pressure style and her in depth knowl....

Want to Advertise on this Site?

Latest Blog Posts

5595 Darien Way Open House Saturday

     OPEN HOUSE       FEBRUARY 24th      10AM-2PMThis one of a kind home nestled in Mountain Shadows will capture your heart the moment you step

Read More

5595 Darien Way

http://brittany.denverhomesearchnow.com/details.php?mls=30&mlsid=6464016&ppc=&noreg

Read More

4 Tips To Get Approved For A Mortgage As A Sole Proprietor

Flexible hours, unlimited earning potential and no annoying boss? You must like the perks that come with self-employment. Taking your career into your own hands can be extremely rewarding,

Read More

Denver Events

Don't miss out on these upcoming Denver Events.February and March 2018 Denver Events-Start planning now for exciting 2018 events and festivals in Denver. Scroll down our month-by-month list and 

Read More