Brexit and slow growth in China are the 2 contenders driving down residential mortgage rates, according to Freddie Mac’s recently released monthly Outlook for July 2016. In the most recent Primary Mortgage Market Survey, the 30-year fixed-rate mortgage fell to 3.41 percent, just slightly above the all-time record low. This is great news to home buyers likely resulting in a boost for housing activity.
“With the U.K.’s decision to exit from the European Union, global risks increased substantially, lending went from rising rates to the lowering of rates for 2016. This turbulence overseas should continue to create demand for U.S. Treasuries and keep mortgage rates near historic lows; thereby, allowing home sales with home buyers to have one of their best years!
Results lead experts to expect growth rebound in the remaining quarters of 2016 to show GDP at 1.9 and 2.2 percent in 2016 and 2017. In light of recent global pressures, the 30-year, fixed-rate mortgage forecast has been revised down for both 2016 (by 30 basis points) and 2017 (by 50 basis points) to 3.6 percent and 4.0 percent, respectively.
If you are a South Florida home buyer, what are you waiting for? Call Susan Penn today at 954-557-5993 to help you with a home purchase.