DataMarkets & Economy

Report shows US mortgage rates dropped after Brexit

Brexit stirs things up abroad, domestic mortgages soften
  • The national average mortgage rate dropped eight basis points to 3.3 percent last week.
  • Foreign investors may begin to use American real estate as a safe haven for investments.
  • Economists anticipate the Federal Reserve holding off on aggressive interest rate hikes this summer.

Zillow announced the current national 30-year fixed mortgage rate dropped from 3.41 percent to 3.37 percent last week. According to the real estate website, the drop could be partially due to the recent 52-48 referendum vote in the United Kingdom to leave the European Union, otherwise known as "Brexit." "Brexit has certainly impacted mortgage rates," said Jordan Levine, economist at the California Association of Realtors. "But one of the things we have been noticing even prior to Brexit was that mortgage rates were softening again." According to Zillow Mortgages, 30-year fixed rate mortgages in California dropped 13 basis points to 3.31 percent last week. However, the 15-year fixed rate slightly climbed to 2.59 percent. [graphiq id="lURq4Q0kOep" title="Brexit Market Reactions, June 29 - Percent Change" width="600" height="540" url="https://w.graphiq.com/w/lURq4Q0kOep" link="https://www.graphiq.com/vlp/lURq4Q0kOep" link_text="Brexit Market Reactions, June 29 - Percent Chang...