How Brexit Affects Us Here in Porter Ranch

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Today I’m joined by our preferred lender Brandon Moss from Prime Lending to talk about the impact of the United Kingdom leaving the European Union and how it affects our market here in Porter Ranch.

As Brandon points out, we saw stocks plummet significantly after the Brexit. Basically, it’s the fear of the unknown; we don’t know how this will affect the U.S. and the global economy, but we’re seeing investing move away from stocks and toward the safe haven of bonds. The U.S. dollar has improved as well. This helps interests rates here at home.

It’s predicted that the Brexit will have an impact on interest rates. Brandon noted that the Fed will meet this summer, and because of the Brexit, the likelihood of them raising rates is basically zero. More importantly, Brandon says, it may take the rate hike off the table entirely for 2016. The Fed looks at both the U.S. and global economies when considering interest rates.

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It may take the rate hike off the table entirely for 2016.

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It has a positive impact on home buyers because it has meant lower rates now, and likely also lower rates in the coming months. It’s a perfect time for buyers to get into a home, or refinance. Even if you’ve refinanced in the last six months, rates are better now, and it would be worthwhile to look at it again. If you can get a good interest rate, lock it in! This market can change, and now is a historically low time for interest rates.

If you have any questions about lending or mortgages in general, you can email Brandon at BMoss@PrimeLending.com or you can call him at 818-256-4330.