How Brexit Can Impact The U.S. Housing Market
After the United Kingdom voted to depart from the European Union, average mortgage rates in the U.S. took a significant hit moving from 60 to 80 basis points. With the split still in limbo, there is still the possibility of a heavy impact on the U.S. housing market, should the separation turn ugly.
"U.K. and EU officials wrapped up negotiations on the terms for post-Brexit relations on Nov. 25, but that process was thrown into turmoil this week when U.K. Prime Minister Theresa May canceled a key Parliamentary vote to ratify the treaty — prompting her own party to call for a vote of no confidence," according to National Mortgage News.
"May ultimately prevailed in the challenge to her leadership, but the future of the Brexit deal remains uncertain."
The report revealed that there are a number of ways that a Brexit deal or lack-there-of could impact the U.S. housing market. For one, a sure exit would send mortgage rates falling once again.
The immediate effect of fallen mortgage rates creates a buyer's market and a buying frenzy could make already tumultuous inventory issues even worse. Though, the report also reveals that Brexit could also end up being a non-issue for the U.S.
To view the seven potential impacts of a Brexit deal or lack-there-of, click on the image above.
