The growing uncertainty surrounding Britain’s exit deal with the European Union could impact markets across the pond.
Daily changes are making a smooth Brexit on the March 29 deadline seem uncertain. But Brexit could impact the U.S. regardless of the outcome. According to Realtor.com, a successful Brexit separation could send wealth British investors to U.S. real estate, after it becomes harder for them to buy property in Spain, Italy, and other E.U. countries. It could also cause investors to buy up stable U.S. Treasury Bonds, instead of British investments, which could in turn drive down U.S. mortgage rates.
"A no-deal Brexit would probably hurt U.S. home sales in 2019," says Chief Economist Danielle Hale of Realtor.com. "The slowdown in global economic growth centered in the U.K. and Europe would likely cause the U.S. economy to soften. That would lead to lower job growth and less income growth. Both are really important drivers for people looking to buy homes."