How has Brexit impacted the D.C. housing market? So far, there is a lot of uncertainty in financial markets and long-term implications there.
In our local real estate market, however, a lot of people are putting money into really safe securities, like treasuries and bonds. When that happens, the value of the U.S. dollar goes up and interest rates go down. As far as the 10-year treasury, Brexit may also lower the yield.
Locally, we haven’t seen any changes in home prices, so don’t worry about home values going down. In any case, they continue to go up. Home value is more closely tied to supply and demand than what happens in the global financial market.
If anything, Brexit has created a great buying opportunity for people in the real estate market. In fact, there is a lot more international money coming back into the United States real estate market. People see the U.S. as the best, safest place to park their money. Investors are using cash to invest in our real estate market.
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Interest rates have dipped even lower since Brexit.
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The bottom line is you should not be concerned about Brexit’s impact on home value. Again, home value is affected more by local economics and policies than anything in the global market.
So, take advantage of these historically low interest rates. You can get a 30-year mortgage for 3.5% or 3.625%, which is unbelievable. It’s also a great time to be in a 15-year amortization - that is under 3%.
If you have any questions, give me a call or send me an email. I would be happy to help you!
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