Britain's June 23 vote to exit the European Union (or Brexit, as it is known) has caused tremendous volatility in markets around the world.
This is important news for homebuyers who have been on the fence, and homeowners worried they missed the chance to lower their monthly payment. Here's why...
Loan rates are influenced by economic news here at home as well as circumstances around the globe that make news headlines. Global instability of any kind, including the mere uncertainty over the impact of Britain's decision on the global economy, has caused investors to move money out of riskier Stocks and into more stable or safer investments, including Mortgage Bonds here in the U.S.
Home loan rates are tied to Mortgage Bonds, so when Mortgage Bonds improve, home loan rates typically do as well ... just like they did after Britain's historic decision. But the reality is, we simply don't know how long this rate opportunity will be available.