By Brett Ellis
Great Britain’s vote to leave the European Union, also known as Brexit, shook financial markets to the core leaving investors scrambling. There was a definite flight to quality into US Treasuries as the 10 Yr note yield fell instantly as the vote was announced. We answer the question, “Could Brexit benefit Southwest Florida home buyers?”
Could Brexit Benefit Southwest Florida Home Buyers?
The answer is yes, it is already benefiting many borrowers. Since Brexit rates are down about 1/4% to ½%. This works out to about 6% more purchasing power for the same payment in one week’s time. In other words, a buyer has two choices. They can either step up about 6% in purchase price and not have the payment cost them any more, or they can purchase the same amount and spend less per month doing it.
This helps more buyers qualify, so it can help sellers too. We have a listing in Bella Casa that has Open House Friday 5:30-7:30 and Saturday 5:30-7:30 July 8th and 9th. It is 3 bedrooms and 2 baths and is listed at $185,000. Before Brexit we needed a buyer that qualified for the full $185,000. …read more
Source:: Top Agent