Against all odds, Great Britain voted their way out of the European Union. Shock waves rippled throughout global economies as news of the highly unlikely event coming to fruition. In the aftermath, the world is now faced with the deep and long lasting implications. Stock markets across the globe fell sharply as the unknown implications of the referendum vote added to the global economic uncertainty. To make matters more unstable, British Prime Minister David Cameron announced his resignation following the results. The fear within the markets is clear, with large amounts of money flowing into the safe haven of the US 10 Year Treasury Note and mortgage bonds. Although benefiting interest rates at the moment, there are many people severely hurting as a result.
Of grave concern are reports out of the UK from people who voted to leave the EU who are now facing serious doubt on the outcome. Many state they used their “leave” vote as an opportunity to have their voices heard and hopefully receive concessions from the European Union that help their cause. As did most of the world, they didn’t truly believe they would have the number of votes needed to make a Brexit a reality. This was an emotionally charged battle, with the ‘exit’ camp focusing on bringing back control to the citizens of Great Britain. The ‘stay’ camp was focused primarily on the economy. Time will tell, but this event could prove economically catastrophic for Great Britain, and trigger more economic unrest in other countries within the EU.
So, the question to ask is, “What happens next?” With today’s mortgage pricing among the best we have seen in years, we have a great opportunity to lock in at very low levels. We could see a bit of a pull back as the day wears on that could cause lenders to reprice for the worse. So stay on guard and don’t miss out on the opportunity at hand.