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David McLaughlin – Perspectives – Mortgages

Mortgage Rates Fall To Historic Lows After Brexit

By David V. McLaughlin

Sarasota/Bradenton Home Prices Continue To Rise

When the United Kingdom voted to leave its place in the European Union, mortgage rates hit historic lows. Mortgage rates dropped about one-eighth of a point after the financial commotion overseas. With interest rates already at three-year lows, this affords buyers a significant opportunity to refinance or purchase a home.

This is great news to those on the Suncoast searching for their perfect dream home. As prices continue to rise, and inventory drops, the market will continue to heat up. These low rates provide a welcome boost to our housing market and to the overall Sarasota/Bradenton economy. Personally, I believe Sarasota and Gold Coast home values will continue to rise as well too, as British citizens look to escape the plummeting real estate market in London and other higher priced areas of the UK.

Why are the rates dropping? The vote in the UK to leave the European Union created uncertainty among investors. Because of this uncertainty, investors wanted to find more stable, safer investment opportunities. Instead of keeping their money in the stock market (which dropped as well after the announcement), they might put their money in government bonds or mortgage-backed securities (MBS), among other options. With international buyers and investors looking to the US as a safe haven to park their money, demand will continue to increase. Therefore, it is not a good idea to wait to purchase. Lower rates equal greater buying power. If you’ve been on the fence about buying a home, now is the time to take the plunge. With prices appreciating, more sellers will be listing their properties to take advantage of the higher prices. This will give buyers more opportunities to find the home or condo that was not available earlier this year.

These low rates we are seeing are boosting homebuyer demand, sending home prices higher. Therefore, it is important to stop waiting for the prices to come down and to purchase a home, or refinance, today.

The first step is to work with lender that is experienced, has a good team to help you navigate the mortgage process and get you the best rate with the least amount of stress. In today’s competitive sellers’ market, it helps to work with a lender that will inspire confidence in the seller and the listing agent. This is particularly critical these days, when many markets have relatively low inventories and there is competition for the best properties.

Mortgage rates are at historical lows RIGHT NOW! So it’s an EXCELLENT TIME TO BUY! Take advantage of the low interest rates while you can. Home buyers are getting a lot more bang for their buck and at payment levels that will be affordable for decades.

David V. McLaughlin (NMLS ID 868815) is a mortgage professional with Team Stettler at Inlanta Mortgage. Team Stettler is comprised of industry veterans with 50+ years’ experience. To date they have closed over 6,800 mortgages for 1.7 Billion in volume. Team Stettler has consistently ranked in the nation’s top 100 lenders and are closing, on average, 260 loans per year. If you are looking for mortgage information please contact David McLaughlin at (941) 724-7653, email
davidmclaughlin@inlanta.com; or visit the Team Stettler’s web site at Team Stettler.