There is no arguing the interconnectivity of our global economy. When something major happens outside the U.S., so often for us it means a change is coming, whether it is to our gas prices, stocks or interest rates. In this case, with Britain’s decision to depart from the European Union, we are fielding reports that mortgage rates will be dropping. But as we have seen with gas prices, the price decline is not instantaneous and will likely take time to yield the most favorable rates.
While interest rates have already ebbed, the decline has been minimal at a mere .02 percentage points. However, this is thought to be just the beginning.
What does this mean for those of us burdened with debt, hindered with low credit scores and with a dream of home ownership? Perhaps, hold off on the house hunting and work on reducing your debt, thereby improving your credit worthiness. That way, when mortgage interest rates do drop, you may be able to sweeten your deal, by paying less in interest you may have more reserves to put toward the cost of the actual house. Or you can pocket the savings and stay ahead of your other debts.
If you are in need of debt relief, you could always find insight and advice from talking to a Florida attorney well-versed in economic affairs and how they and other government relief programs may affect your financial situation. Sometimes getting ahead of your financial obligations is as simple as aligning your priorities correctly.
Source: Fortune.com, “Brexit Could Make Your House Worth More,” Chris Matthews, June 24, 2016