Stronger Chance Of UK Euro Exit

Dated: 06/05/2016

Views: 891

The main influence on mortgage rates over the past week came from an unexpected source. Investor expectations for the UK to vote to leave the European Union (EU) increased, which was viewed as positive for mortgage rates. Recent economic data was mixed and had little impact. As a result, mortgage rates ended the week lower.Will they vote to stay or to go? A new poll released Tuesday showed that a majority of Britons now say they will vote to leave the EU. Before the latest poll, investors assigned a low probability that the vote would be in favor of leaving. A vote to leave will increase the level of uncertainty in global financial markets and could slow global economic growth. On this concern, investors shifted to safer assets, such as bonds, including U.S. mortgage-backed securities.The major economic data released over the past week contained some good news and some disappointments. Upside surprises were seen in consumer spending and manufacturing, while construction spending and consumer confidence revealed unexpected declines. The core PCE price index, the inflation indicator favored by the Fed, remained at an annual rate of 1.6%.While the most recent data was mixed, some strong economic reports earlier in the month have raised investor expectations for economic growth during the second quarter. Following a recently revised growth rate of just 0.8% during the first quarter, early estimates are for GDP growth of 2.5% during the second quarter, according to the Federal Reserve Bank of Atlanta.

Blog author image

David Sarnowski

David is a seasoned real estate professional, specializing in residential sales, rentals and investment properties. David is a 15 year resident of the New Jersey Gold Coast, with the local knowledge n....

Latest Blog Posts

Buying A Home Take Stock Of These Things

What are some of the most important factors that buyers take into consideration when looking for a new home? There are the obvious things like price, square footage, location and lot size. Those

Read More

Millennial Home Buyers What You Need To Know

In the past, you’ve likely read about how the Millennial generation is opting to rent rather than buy property. While this still holds true for many Millennials, the fact is that a growing number

Read More

5 Upgrades That Add BIG Value To Your Condo

Following my previous post, "10 Things To Consider Before Renovating Your Condo" now you should have a better idea of who you're renovating for, what the rules are, and how to get the most out of

Read More

10 Things To Consider Before Renovating Your Condo

I read two great articles recently about the best upgrades and renovations to consider when you want to add value to your condo. This is great advice if you're looking to sell your home soon or just

Read More