Brexit Effect On Mortgage Interest Rates In The USA

Brexit Effect On Mortgage Interest Rates In The USA

At the beginning of the summer, the U.K. voted to leave the European Union. This became known as "Brexit," and it has created a lot of uncertainty and worry for our neighbors across the Atlantic.

Here in the U.S., though, Brexit has been nothing but good for our real estate market. Because of Brexit, investors all over the world want a safer place to invest, and this has pushed already-low mortgage interest rates down even further because they are investing in our housing market.

In fact, we are now in the middle of the second-longest run of cheap mortgage rates in history. Currently, the 30-year fixed-rate mortgage is 3.46%; this is only a few points above its all-time low of 3.31%.

What does all of this mean for you?

First, if you are looking to buy a home, now is an unusually good time to do so because these low rates mean you will be paying less. As an example, if you were to take out a 30-year, $250,000 mortgage today versus a year ago (when interest rates were almost 4%), you would save more than $25,000 over the lifetime of the loan.

Another way to look at it is that at today’s rates, you can afford a more luxurious home without paying more. For example, if you were to take out a 30-year mortgage, you could now afford $15,000 more for a home than you could a year ago while keeping the same monthly payments.

Or, to look at how rates affect a fixed payment, see the chart below which shows what impact rising interest rates would have if you planned to purchase a home within the national median price range, and planned to keep your principal and interest payments at or about $1,100 a month.Image title

Clearly, this is a great opportunity.

If you’re curious about which homes are available for sale in the greater Palm Springs area right now, CLICK HERE TO SEARCH HOMES.

Now, if you are looking to sell rather than buy, these low rates also benefit you big time. The more the mortgage rates drop, the larger the population of qualified buyers is, and the greater the demand is for homes.

This healthy demand keeps up the price of your home and ensures your home will get sold quickly. Not surprisingly, pending home sales are up by 1.3% this summer and are now at the second-highest level in over a decade.

If you’d like to know how much your home might be worth in the current market, I have a great tool I’d like to share with you called Market Snapshot. To use this tool, simply enter your address and some attributes of your home, and then we will provide you with a list of all of the homes that are currently on the market in escrow and homes that have sold in your specific area. This will give you a good idea of the value of your home.

As you can imagine, these ultra-low mortgage rates won’t last forever and will rise sooner or later.  So take advantage of this amazing opportunity now!

This Blog courtesy of Will Cook, Will Cook Group, Palm Springs, CA 

© 2016 Will Cook Group. All Rights Reserved


Will Cook Headshot
Author:
Phone: 760-774-3066
Dated: October 22nd 2016
Views: 645
About Will: Ranked in the top 1% of all agents valley wide, Will is an Associate Broker and Team Leader of the W...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Recent Blogs

3 Tips To Become A Successful Vacation Rental Owner - I am coming at you from one of my
An Opportunity For Move Up Buyers - As you saw in my last market
Palm Springs Area Local Real Estate Market Update May 2018 - What’s going on in our local
4 Reasons Your Home Insurance Company Will Drop You - There are a number of things that

Our Bloggers

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

WILL COOK GROUP|Keller Williams Luxury Homes|BRE# 01879277
435 N. Palm Canyon
Palm Springs, CA
760-565-5714
760-770-9510

Other Locations