How Brexit Effects YOU.

What does Brexit mean to you?
Britain's June 23rd vote to leave the European Union (or "Brexit") has caused tremendous volatility in economic markets around the world.  But what does it mean for home buyers (and homeowners) on the North Olympic Peninsula?  Lower mortgage interest rates.

Mortgage interest rates are influenced by a variety of factors at home and abroad.  Global instability of any kind, including the mere uncertainty over the impact of Brexit on the global economy, has caused investors to shun riskier stocks and move their money into stable markets like the US bond market.  Mortgage interest rates are closely tied to bond markets.  So when the bond market improves, interest rates typically do the same thing.

Interest rates were improved about 0.16% the week of June 30th over a month ago.  Not a huge difference, but every little bit helps, right?

How long will the lower rates last?  Nobody knows.  But it is widely believed that the economic turmoil will motivate the Feds to delay further increases to the Federal Funds rate until at least December of this year.

Movin' on Up
Home values are increasing, interest rates are low, and the rental market is tight.  That's the perfect recipe for homeowners whose homes aren't quite meeting their needs anymore.  Want a larger yard?  Wish you were closer to town?  Too many kids and too few bedrooms?  Now's a great time to move up, move down, or move on.

I've helped several families pull equity out of a home they already own to use as a down payment on a new abode.  And they don't have to sell the "departure residence."  The rental market is strong enough that the rent handily covers the mortgage payment.  If your space is no longer working for you, give your friendly local mortgage lender a call!