BREXIT: Will Great Britain exit from the European Union?
From the desk of trusted lender, Dana Briganti (Premier Mortgage Group), I got this little article today. If you are like me, you are waiting with interest to hear the outcome of this vote. Wondering how it will affect the stock market and more importantly… Mortgage interest rates!
I thought this was informative and succinct. Just the way I like economic updates and forecasts.
All eyes are on the U.K. Thursday as they vote on whether or not to leave the European Union. The impact of the result likely won’t be clear until Friday morning. Regardless of the outcome, the effects are going to be felt globally. Specifically for the U.S., 30% of our sales in Europe take place in the U.K. and they are our 7th largest trading partner.
The consensus is that Britain leaving would immediately harm their economy as the pound has plummeted this year, especially as recent polls indicate a slight majority in favor of Brexit. This would have a negative impact on US stocks, with banks taking the brunt. However, there is the potential for mortgage interest rates to move even lower, testing all-time lows as money floods to the relative safety of Treasuries.
A vote to stay will stifle growth, supporters of Brexit argue. The fear is that the ever expanding EU will continue to add decrees and red tape in an already cumbersome arrangement. Last year, Britain contributed £13 billion while the EU spent £4.5 billion back on the U.K. The forecasts over the next 5 years was also recently revised up by £3.1 billion due to the “reassessment of the size of Britain’s economy”. Many see this as punishment for economic success and another reason to part ways with the EU.
Following the decision, I will be supplying more information and analysis on Friday as we watch the impact on both global and U.S. markets.
So, if you are house hunting right now and “the one” comes your way, my fingers are crossed for you… for a Brexit! No-one I know will cry if interests rates slip a little lower and make rising prices just a tad more affordable.
Don’t wait for the open house. Call me for a showing today!
PS: I like this interactive chart, courtesy of the Economist. It seems the old and the poor really want to leave… But the rich and the young are hoping to remain in the EU!