Brexit=Britain Exiting the European Union (EU), which, for those following the news, may impact the economic and political infrastructure. It remains to be seen how this change will affect the United Kingdom, and perhaps other countries as well. Furthermore, the EU promotes free trade within the Union, and now that the UK has gone through the referendum process, they are of the first to leave. According to sources, this process most likely will take two more years as the Union and UK determine the exit policy, nonetheless, the UK may have begun the domino effect for other countries to follow.
Along with other countries currently established in the EU, Time reports there is talk of countries leaving the UK in order to stay in the Union, which creates a Balkanization ripple—the UK leaving the EU and Time indicates Scotland and Northern Ireland could leave the UK as they perceive the Union as beneficial. As to not continue with such division, assume that the die has been cast and the UK has broken the ice. Brexit not only impacts the immediate countries involved but export, import, global money and banking, and the lending industry.
According to CNN Money when people, from micro and macro points of view, view volatility in the global market, they hang onto their money a little tighter – and…spending money spurs the economy, jobs, employers and business.
Although spending may be the largest economic activity in America, it is “consumer confidence” that is the number one economic driver. Bottom line….when people feel confident, they spend their money.
Right about now, you may be wondering “how” Brexit relates to Washington County, and “why” is American Heritage Homes keeping an eye on this situation. ((Great question!)) According to Fox Business there is some debate as to the impact of Brexit; some think the impact will be fleeting and short-term while others determine the exit will long-term impact the global, national, and community economies. As it may be, interest rates after the referendum vote took a dip from 3.73% which it was on the day prior to the vote, to 3.6% the day after the vote. Furthermore, Fox Business illustrates that as rates continue to drop, new home purchases will be easier, cheaper, and more cost effective. Even more, this may provide the perfect timing to purchase your new home and stop renting—pay toward an investment rather than signing over your monthly rent check. Brexit may also provide a niche for refinancing, rental home purchases, or remodeling your current home.
According the St. George News, the housing market in June, 2016, experienced a 9.8% increase in the global market. St. George News continues that nationwide housing starts have been trending upward and as you drive Washington County, you will see new construction in every direction.
When making the largest purchase of your life, American Heritage Homes offers a blend of warm and fuzzy bliss coupled with smart, savvy investment reasoning —please refer to the Resources section of our webpage to begin getting familiar with common mortgage terms and applications.
Some things to consider as you begin building your future home:
- Who will I use to finance my home?
- What loan program is right for me? (Conventional, FHA, VA, USDA, RURAL, REVERSE MORTGAGE, etc…)
- How much money will be needed for my down payment?
- How does my credit score impact my interest rate?
From our home to yours…think consumer confidence and think possibilities!
American Heritage Homes….WELCOME HOME