BREXIT Has Allowed for New, Lower Mortgages
Britain’s leave of the EU has left the economic markets scrambling to get back on its feet, leaving windows of opportunity for some people. Mortgage rates are the lowest they’ve been since 2012 thanks to the move. The 30 year average came in at 3.46 percent.
This in turn increases the buying power of the market, allowing people to reach a new expanse of homes that were previously unavailable to them. Well qualified buyers can afford homes that are roughly 8% more expensive than at the beginning of the year. This offsets the rise in home prices we’ve seen this year.
Lower rates are great but some of the consequences aren’t: it motivates lenders to be tougher on credit restrictions. Lenders have become more risk-adverse because of decreased profits from lower rates and higher origination and servicing costs.