Last week’s historic vote in Britain to exit the European Union has sparked a bevy of discussions on how the decision will impact the rest of the world. Here, we’ve compiled some recent articles written about the “Brexit” and its effect on real estate around the globe.
Thanks, Brexit! Well-Qualified U.S. Buyers Reap a Windfall
“Brexit” has left U.S. home buyers with a very definable windfall: mortgage rates that are now the lowest they’ve been in more than three years.
The average 30-year conforming rate on Monday was 3.46%, very near the lowest average rates recorded in late 2012.
‘Brexit’ Could Give U.S. Real Estate Brief Boost
Britain’s vote yesterday to exit the European Union will likely have a long-term impact on the world economy, but in the short-term, U.S. real estate could be flooded with investors flocking to the U.S. as a safe haven, pushing up the dollar and sending down mortgage rates.
Brexit: Here is the Immediate Impact on U.S. Mortgage and Housing Finance
The Brexit vote may not cause as dramatic of an effect as some people think, and will even take years before going into effect, said Andrew Kenningham Capital Economics senior global economist. The economy may even see benefits such as loosening monetary conditions.
Brexit Effect On US Real Estate: Why Millennials May Be Priced Out Of Some Markets
“The implication of Brexit taking place is that it is looking good for the U.S. market,” Mermelstein said.
Yun said the prospect of Britain turning toward isolationism has raised “questions of confidence,” encouraging investors to seek opportunities elsewhere. “The U.S. will be considered competition or a safe haven,” Yun said, adding that a Brexit implies a reduction in international trade and a negative impact on economic expansion for both Britain and the EU, which will trickle down to other countries.
‘Brexit’ Could Send Shock Waves Across U.S. and Global Economy
Britain’s departure from the European Union could send shock waves across the global economy and threaten more than a trillion dollars in investment and trade with the United States.
What Will Happen to the Housing Market if Britain Leaves the EU?
A YouGov survey of 1,735 UK adults revealed that 61% of Britons who think that their house price will decrease if Britain exits the EU believe that it will take at least five years for UK house prices to recover from the impact that the change will have on the UK property market and wider economy.
A Brexit Would Inflame Canada’s Hot Housing Market
But if the Brits do indeed choose a so-called “Brexit” from the EU, experts say the resulting economic storm is sure to buffet faraway economies like Canada.
“Indeed, if the ‘leave’ side prevails, global interest rates are likely to remain even lower for even longer amid the deep uncertainty over the U.K.’s and the EU’s economic fate and likely financial market volatility,” said Doug Porter, chief economist at BMO Capital Market. “In that event, the (U.S.) Fed will remain on ice even longer and Canadian rates will again probe all-time lows, keeping mortgage rates at an extremely low ebb and thus further fanning the flames in the domestic housing market.”