Falling Mortgage Rates
For many, there’s a definite bright spot in the confusion since June 23. Each week since the vote, mortgage interest rates have fallen. As of July 7, 30 year mortgage rates were at 3.41 percent, historic low levels. While there was talk earlier this year that we could expect the Fed to raise rates soon, that seems to be a non-issue, at least for now.
Well qualified buyers will be able to take advantage of these lower rates and increase their buying power. More buying power equals more home for your money. For those who aren’t in the market to buy a new home, refinancing your existing mortgage may be an option for you. Lower house payments isn’t just more money in your pocket. It could be an opportunity to do that kitchen or bathroom remodel you’ve been thinking about or landscape your yard.
Fewer British Buyers
For now, at least, with the value of the British pound still lower than pre-Brexit days, it could mean that we see fewer British buyers. International buyers have had a lot of buying power in the U.S. and many have used it here in Florida, especially the Tampa area. Between April 2015 and March 2016, British buyers spent $1.6 billion in Florida.
Sellers shouldn’t be too concerned that this will have a major impact on your ability to find a buyer for your home. Demand has been up with the lower mortgage rates and inventory is still tight around the entire Tampa Bay area. Finding a buyer for your home should be no less of a problem than it was before Brexit.
Will Brexit have long-term effects on our real estate market? It’s too soon to tell. The United States may see some benefit if businesses choose to relocate from Great Britain, but only time will tell. For now, anyone on the fence about buying may want to take another look because rates will only fall so low before they go back up again.