Brexit Update 
Brexit happened. And one of the biggest, and most immediate, effects on everyday Americans is how it will change mortgage interest rates.
Doug Haldeman with Cornerstone Mortgage, Inc, encourages those looking to buy or those wanting to refinance to call him now to take advantage of the lowest rate in three years. Take advantage of this opportunity as we don’t know how long it will last!
They’ve already hit rock bottom this year. In the past month alone, 30-year fixed-rate mortgages have hovered around 3.7 percent, nearly a three-year low. Britain’s vote to leave the European Union is expected to drive rates even lower.
Mortgage Bankers Association chief economist Michael Fratantoni forecasted a rate of 4.8 percent by December 2017. That would be the highest rate since 2009, and a 30 percent boost from current levels.
By the end of 2016, Fratantoni expects rates to reach four percent. He noted that he’s turned his estimates more conservative in recent months, but predicts an increase nevertheless.
That could change with the Brexit referendum passing, however. He noted that Treasury rates had already dropped about 20 basis points by Friday morning.
“At this point, it is unclear whether this will just be a short term disruption, or whether it will have a longer term impact,” Fratantoni said. “Our best guess at this point is that the impact on the mortgage market will be to keep mortgage rates lower for longer, likely leading to another pickup in refinance activity.”
Sources
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