There are still many factors up in the air as the world waits to see the fallout of Brexit, the United Kingdom’s vote to leave the European Union. Speculation that other countries may follow the lead of the UK, that Scotland and Northern Ireland disagree with the decision to leave, compounded by our own upcoming presidential election, leaves a lot of uncertainty for the US market.
Industry experts believe we will see a boost in US home sales as foreign investors seek out a more secure market. We are also currently seeing mortgage rates at near record lows; however these low rates do not necessarily mean we will see drastic increase in new home purchases.
According to an article in the Washington Post, “Rates may be low, but not many people are rushing out to make a big purchase such as a home with so much economic uncertainty. The group most likely to benefit from low rates are homeowners seeking to refinance” June 30, 2016
The following industry articles further discuss the uncertainty created by Brexit as well as the potential effects to the US housing market:
The UK decision to leave the EU is just one other factor in an already tumultuous real estate market. Last October the new TRID (TILA RESPA Integrated Disclosures) Rule introduced required changes to standards, processes, and forms that were a staple of our industry. Add to that a political scene that is affecting homebuyers of all ages, and one thing is certain; some of these moving pieces must first be resolved before we will know the full impact of Brexit on the US housing market.