Charles H. Miller
Brexit may be horrible news for the European Union, but Americans are celebrating record low interest rates as we speak. The average rate of a 30-year fixed mortgage dropped to 3.48%, which is the lowest level since May 2013, according to Freddie Mac. In comparison, a year ago, the rate was 4.08%. And the situation is similar with the 15-year fixed mortgage, which dropped from 2.83% to 2.78%.
“Obviously it’s a good time for anyone who is the market for a home purchase or had been on the proverbial fence about refinancing,” Mark Hamrick, senior economic analyst at Bankrate, told CNN.
Adding to the home buying / refinance boom are rumors that the U.S. real estate market will now look even more attractive to foreign buyers looking for a safe haven, given that UK has decided to leave the EU. Comparing April of this with April of last year, the home prices have already increased 5 percent, according to the latest S&P/Case-Shiller National Home Price Index released earlier this week.
WARNING: The “Brexit Effect” Won’t Last Forever!
It will take some time for Britain to recover from its decision to leave the European Union, but have no doubts about it — they will recover and continue to be a world player. Even before that happens, we’ll see the “new normal” emerging with markets calming down and adjusting to the “new normal.” At that time — and that could happen before you know it — the “Brexit Effect” will fade out, and interest rates in the U.S. will rise again. If you DO want to benefit from the record low interest rate, now is the time to act!
The trend of increased home prices will likely continue in the near future, making those refinance offers you may be seeing throughout the internet that much more attractive. Or you don’t have to look for those ads and check with multiple banks. LowRatesShop can do all the hard work for you. You simply fill-out the form online, and let them do the hard work in the background, presenting you with multiple offers to choose from.
