US Housing Market is Red Hot Fannie Mae, & Zillow Agree That Now is the Time to Buy a Home or Refinance Your Current Home
With the Brexit Campaign winning and Britain leaving the EU it’s the perfect time to buy a home. With the British pound falling US mortgage rates are at an all-time low. Although headlines are making it seem as though we are in an economic downfall, the truth is these changes really won’t affect the global market for another 2 years. The problem is that not many people know that, causing this international upset to scare both buyers and sellers away. The Good News: home loans are cheap.
Home Loan giant Fannie Mae sees this shift in Great Britain as a positive for the U.S. housing market. Fannie Mae Chief Economist Doug Duncan’s thoughts on the current housing market are comforting stating that, “The reaction in the Foreign Exchange markets has been as forecast in the event of an exit, a shift to the advantage of the dollar.” Meaning that if you’re seeing Great Britain’s financial change as frightening, it is in fact anything but in terms of the US economy. Fannie Mae Chief Economist goes on to say, “U.S. treasury rates have fallen as capital markets participants have moved toward safety. This will likely lower mortgage rates as well in the short term.”
This should come as no surprise since in the past whenever U.S. treasury rates have fallen it has always led to lower mortgage rates. Housing guru Zillow had a similar reaction to the Brexit vote. Zillow vice president of mortgages, Erin Lantz, also agrees that this change will create a massive advantage to the U.S. housing market saying, “We expect mortgage rates to reach historic lows in the wake of the Brexit vote, as investors flock to relatively safer investments in U.S. mortgage-backed securities.”
The truth is after the Brexit Vote, many international investors pulled their investments out of Europe and poured them into the safer US market in order to secure their funds. That means US mortgages are seen as sounds investments. Yes you read that correctly. The worlds sees the US housing market as safe, so why not take advantage?
The process of purchasing a home can always seem scary. It is unarguably the most expense transaction that most people will ever participate in during their lifetime. However buying a house doesn’t need to be terrifying. In fact if you do your research it can be a great investment and save you money.
Whenever there is a change in the economy, especially one as surprising as Brexit, people decide the best plan is no action. They feel that if they sit and wait then everything will calm down and they will feel more confident to buy once the market isn’t “so risky.” The truth is the best time to buy is often when things are upset. Don’t be one of the people that is watching while the true successful purchasers are getting all the great deals.
This is in fact the perfect time to go get preapproved and take advantage of these low low low interest rates. If you already purchased your home, don’t worry you too can benefit from these savings by simply refinancing your home. Refinancing is quite similar to purchasing your home all over again but with a lower monthly payment, due to the lower interest rate. This saves you money and frees up your funds so your entire paycheck isn’t going into your mortgage.
The smart consumer knows when to take advantage of a rare opportunity, this is one of those times where you can come out the winner if you simply act fast. If you were considering purchasing a home this is an opportune time to finally call your mortgage lender and start the process. If you are on the fence about buying, consider the same things you always should. Do you have a secure income? If you were planning on using funds from stocks or your 401k for you down payment, now is not the time to cash out. If you have cash on hand however, or were gifted a down payment, or want to take advantage of MFA loans that can offer down payment assistance than take advantage of these lower rates.
Still not sure where to start? Sr Loan Officer, Gabe Haney at Elite Mortgage, can help answer any of your questions or concerns as well as quote you the latest interest rates at this time. Remember if you already own your home you can still take advantage of these historically low rates. Whether you are home buyer or a home owner that wants to refinance contact Gabe Haney at (877)-336-9097 or email at firstname.lastname@example.org.