I believe that BREXIT (Britian’s vote to discriminate) will have a long-term impact on the economy. Pushing up the U.S. dollar and sending down mortgage rates will flood the real estate market with investors as a safe haven. Demand for Florida real estate could rise.
Global corporations could show additional interest in U.S. real estate as they see the U.K. as a less certain place to invest their money.
We know that a rise in the dollar will hurt U.S. exports, and mortgage rates will drop possibly hitting new record lows. If you’re a borrower, don’t wait to lock your rate. Do it now! I am sure this won’t last long. Let me give you one more piece of advice…. if you like a home, don’t kill the deal over a $2,000-$3,000 price difference between the yourself and the seller. When rates come down, home prices go up!
I also believe that Europeans and South Americans who may have looked to London to invest will alternatively turn their sights to U.S. residential real estate. The British economy will take a hard hit, and fewer Brits will now be able to buy in the U.S.
As far as the home-mortgage refinancing which started out a little slow earlier this year, I believe that this will give lower rate-refinancing a new life. Maybe there’s another mini-refinance mortgage boom coming!
These are some of the short term results. In the long run though, the vote could cause job loss, income loss, and loss of consumer confidence. This is the unavoidable consequence of voting against your own interests.
Harry S. Berry