Chris B Johnson, REALTOR®, SFR®, CDPE®, CHS®
Weekly Mortgage Rate Update: Over the past week, investors continued to seek the safety of U.S. bonds in the wake of the British vote to exit the European Union. This added demand offset stronger than expected U.S. economic data, and mortgage rates ended the week at the best levels in years.
THIS WEEK'S RATE TREND IS DOWN
Brexit Will Be A Slow Burn, Not A Hot Flash
In the minutes and days after Britain voted to leave the European Union, stock markets tumbled around the world. Bond yields fell and the Dollar strengthened as investors rushed to save haven assets.
This was a predictable reaction to a burst of uncertainty, but the turmoil has now subsided and markets have calmed. The S&P 500 has reached a new high, and the index of British blue chips has surpassed its pre-Brexit value by more than 6 percent.
But the short-term effects were never the real danger, and new issues will unfold over the coming months and years. If English officials do not strike a new trade agreement in Brussels, their economy stands to lose substantial ground over the long term...