While some celebrate the U.K. voters’ decision to sever ties with the European Union as Britain’s independence day, others are treating it as the beginning of the end of days. It is a highly contentious and divided situation, and while it may not directly involve the United States, the impacts of the decision are certain to travel across the pond with the produced ripple effect being felt in the U.S. economy, more specifically, in the U.S. housing market.
As the market predicted a “stay” decision to be the outcome, the victorious “leave” vote sent some shockwaves through the international market, but will it actually have any effect on home prices here in the United States? As Forbes reports, it depends. While buyers who had money in the stock market aren’t as rich as they were just a few days ago, mortgages are about to get cheaper which will help replace some of that incentive to buy. It all depends on how buyers react to uncertainty.
Meanwhile, loans are about to get cheaper and interest rates may continue to get lower and lower. Additionally, for most people, the Brexit vote shouldn’t have much of an effect if any on their ability to secure a mortgage. As far as putting off buying or selling a home, well, that hasn’t changed much from before the Brexit vote. The same fundamentals apply in determining if it is a good time to buy or sell.
