Brexit May Result In Opportunity For Texas Mortgages
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SOUTHLAKE (CBSDFW.COM) - After some made us feel like Brexit was the end of the world, now others say it may be a huge opportunity.
The UK's vote to leave the European Union sent shockwaves throughout the financial markets. That uncertainty sent many investors looking for safety in the form of U.S. Treasury bonds.
"This area is all going to open up. It's going to be an open bar with bar stools around it instead of being a closed in bar," Roxann Taylor said as she surveyed the remodeling underway at her Southlake home.
By the time Taylor's home is remodeled, she may have Brexit to thank for it. Voters in the United Kingdom probably weren't thinking about Texas real estate when they opted to leave the European Union. But the resulting flight of cash into US Treasuries has brought mortgage rates close to record lows. As a real estate broker Taylor is quick to encourage new home buyers to take advantage of a low mortgage, but she says people like herself can also benefit.
"It may be that they don't need a new home, but they can refinance, get a lower rate, or refinance and remodel," Taylor said.
Mortgage rates are hitting a three-year low. The average on a 30-year fixed dropped to 3.8%. Just a year ago that number was above four percent.
"A few points one way or another in a 30-year fixed mortgage could mean hundreds or even a thousand dollars difference a month in a mortgage payment," Taylor said.
It's unclear how long Brexit uncertainty will keep mortgage rates down. That's why Taylor says at the very least homeowners should consider their options.
"This is one of those windows. Right now we don't know how long this window's going to be here, but I think it's a great time to look at doing whatever you're going to do," Taylor said.
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