According to a recent article posted by Florida Realtors, Britain's vote to exit the European Union (EU) will likely have a long-term impact on the world economy – but in the short-term, U.S. real estate could be flooded with investors flocking to the U.S. as a safe haven, pushing up the dollar and sending down mortgage rates."Demand for U.S. real estate could rise," says NAR Chief Economist Lawrence Yun. While a rise in the dollar could hurt U.S. exports, it's also expected to put downward pressure on long-term mortgage interest rates.
"Mortgage rates will tumble," says Greg McBride, chief financial analyst at Bankrate.com, "possibly hitting new record lows. If you're a borrower, don't wait to lock in your rate, as this opportunity may not last long."
However, Fannie Mae Chief Economist Doug Duncan says low rates could last for a while. "The Fed will very likely be on hold for some time as it observes the impact on U.S. and global financial markets and economic activity," he says.
If mortgage rates – already at historic lows – drop even further, that could help drive up sales of all types of U.S. real estate, including on the residential side.