What "Brexit" Means for the US Real Estate Market

Britain's vote yesterday to exit the European Union 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. On the commercial side, global corporations could show additional interest in U.S. real restate as they come to see the U.K. as a less certain place to set up or maintain their businesses, Yun says, "especially in London, as it becomes a less attractive place to conduct global business." 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."