A Splash in the Pond

July 21st, 2016

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Photo: CNBC

Politics are on the brain with the upcoming presidential election in November. But for the moment, it seems another country has been making waves with its political banter. Ahh, the Brexit. If you’re not a world economist or don’t have your PhD in finance, all of this EU talk can be pretty hard to follow. Lucky for you, we’ve done our research and have found some exciting info on the home owning front that just might turn your key!
In the U.S. current interest rates are at an all time low. But with the Brits bidding adieu to the Euro Union, their farewell is leading to even lower mortgage rates for us living across the pond. This lower mortgage rate is the effect of investors placing their money in the trusted U.S. Treasuries. With the highly sought safety in the US dollar, the demand for U.S. treasuries is driving rates lower, which then leads to low mortgage rates. Long story short, the Brexit is making homes more affordable with lower mortgage rates, and creating the perfect storm to stick your foot in the market’s door.

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Photo: The Straight Times

For first time home buyers, it seems the Brexit has opened up the market for you. However, before you start your bidding for your perfect home, here’s what you can expect… Sellers in the affordable home sector are also benefiting from the Brit’s departure. This means that you can plan to see competition in buying your new digs. But more importantly, the Brexit will benefit well-qualified buyers the most. To be a well-qualified buyer Realtor Magazine spells out a few key qualities that you should have checked on your list: have the funds to make a down payment on the house, have the income to afford the home in the long run, maintain good credit, and finally don’t have too many other debts you’re currently paying off. Remembering these pointers will make your home buying experience a positive one, thanks to the Brits. The British are coming; this time to a housing market near you!