It was widely assumed that British voters were going to vote to remain in the European Union. But that isn’t what happened; instead, British voters gave everyone a very visual lesson on what happens when you assume.
And while there has been much debate about whether or not a break from the EU will be a good thing for the U.K., Americans certainly aren’t complaining about the decision right now thanks to the vote’s effect on mortgage rates, which dropped to the lowest they have been in more than three years, realtor.com reports.
On Monday, June 27, the average 30-year conforming rate was 3.46 percent, close to the lowest average rates recorded at the end of 2012. With these mortgage rates, buyers who are qualified will be able to afford a home that is 8 percent more expensive than at the beginning of the year.
These low mortgage rates bring with them lenders who will be tougher on credit restrictions, however. Credit access seems to be mirroring mortgage rates in its downward trajectory. The group that is hurt most by tighter credit is, who else, first-time buyers. Meanwhile, the current environment will favor those who have the ability to skip financing completely.
Additionally, as the stock market continues to ride a seesaw up and down, the luxury housing market will continue to be on the weaker side, as well.