If you haven’t heard the news lately, I am not sure if you have been living under a rock, but “Brexit” or the British Withdrawal From The European Union has been approved by the voting public of Great Britain. Some history behind this is back in 1973 the United Kingdom joined what was called the European Economic Community or EEC for short. Later in 1975 it was voted on and approved that the United Kingdom would then be joining the group to be called the European Union. Just a month or so ago the United Kingdom had a vote on the grounds of whether they should leave the European Union and it passed with just 52% of the vote which was a shock to many and it has since sent shockwaves through the economic world. Besides the loss in the value of the Pound, there are also Brexit Mortgage Rate Effects that we are still seeing currently.
If you have been contemplating a refinance and have been hesitant to pull the trigger, now might be the best time to lock-in a lower rate before they hit the rise per Brexit Mortgage Rate Effects. The week ending July 8th saw the 30-year fixed rate reduced by 7 basis points to 3.41% from the prior week’s 3.48%. Also, mortgage rates a year ago were over 4%, so if you have been waiting, they might not be getting much lower and people are starting to take notice. Mortgage applications for both purchases and refinances are up from the prior week’s as more and more borrowers have determined the best time to refinance is now. As refinancing applications are outpacing purchase applications, lenders are getting swarmed with refinance requests. As an example, if you currently have a 4.25% mortgage on a $200,000 home, you are paying $984 in principal and interest. If you could refinance into a rate of 3.5%, you would be looking at a payment of $898 or $86 cheaper per month which would save you over $1,000 each year for the remainder of the loan or $30,000+ in its entirety.
Brexit Mortgage Rate Effects in combination with other factors have assisted in lowering the average interest rate in the US market. Aside from the Brexit Mortgage Rate Effects, mortgage rates were also affected by a strengthening US Dollar as well as investors believing that the Federal Reserve will keep rates unchanged at their next meeting. Even though historically rates are still near record-low levels, if the markets keep fueling the Brexit Mortgage Rate Effects, we could possibly see some more record-low mortgage rates in the coming month.
Let me say that my opinions of the Brexit Mortgage Rate Effects are for informational purposes only and are only the view of myself. However, if you would like to see if refinancing now would lower your monthly payment, then you need to reach out to me at 888-900-1020, email me at email@example.com, or visit www.loanconsultants.org and fill out an inquiry/application TODAY!!! Remember, rates won’t be low forever, so act now.