Mortgage Rates Fall Near All-Time Lows
Brexit is having a profound effect on U.S. homeowners — but the effect has been positive.
Mortgage rates are hitting three-year lows, and could hit the lowest levels ever, now that Britain voted to exit the European Union (EU).
Homeowners are discovering that a refinance now pencils out, when perhaps it didn’t just days ago.
Here are 3 ways Brexit could benefit you whether you are a homeowner, or want to become one.
Tip: Markets absorb news quickly, and rates can turn higher in a matter of hours. This opportunity might not last. >>Click here for today’s low rates>>
Brexit Benefit 1: Lower Mortgage Rates
No one expected 2016 to be the year of low rates, but that’s exactly how it’s turning out.
Rates were already near 3-year lows before Brexit happened. Now, rates are flirting with all-time lows achieved in 2012, when thirty-year fixed rates were in the low-3s.
Many lenders are now quoting similar rates.
Adjustable rate mortgages are in the 2s, as are fifteen-year fixed rate loans.
Uncertainty in world markets has driven down U.S. mortgage rates as money managers and investors worldwide pour into mortgage-backed securities, instruments that determine consumer mortgage rates.
Brexit Benefit 2: Save $60 Per Month, Per $100k
Analysts predicted the 30-year mortgage rate would be above 4.5% by mid-2016. Instead, rates are in the mid-3s.
Thanks in part to Brexit, rates are 100 basis points (1.0%) lower than expectations.
What does that mean for the homeowner? About $60 per month in savings, for every $100,000 borrowed.
A household with a $350,000 mortgage can save more than $200 per month as compared to where rates should be right now.
Homeowners with higher rates can save even more.
Brexit Benefit 3: Increased Home Buying Power
Today’s home buyer can afford about a 10% bigger home purchase price thanks to current mortgage rates.
Take this example. A home buyer who secures a mortgage at 4.5% could afford a loan of $250,000. At 3.5%, they can buy a house at $275,000 with the same monthly payment.
What Are Today’s Mortgage Rates?
The news of Brexit lowered today’s mortgage rates — close to the lowest ever available.
Get a mortgage rate quote for your home purchase or refinance now. Rates may soon rise, and this rare opportunity could be gone.