How Brexit could affect the global economy (including U.S. housing)

Last week’s rate movements were unusually powered by individuals acting on principle
  • Oddsmakers in the United Kingdom have consistently posted very long odds for U.K. exit from the European Union.
  • The flip in polls to Leave upended financial markets.
  • Closer to home, Fed Chair Yellen acknowledged that forces holding down interest rates will be protracted.

So, the interest rate for U.S. mortgage borrowers is determined by London bookies? So it is, and for one more week. And the result, briefly, rising now: U.S. 10-year T-note to 1.55 percent and mortgages near 3.50 percent, both five-year lows (note that overseas money prefers Treasurys to mortgage-backed securities, the yield spread widening).