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  • Brexit will Impact U.S. Consumers in 5 Ways

    July 4, 2016
  • It was a surprise to hear about “Brexit,” which is the nickname for the British exit from the European Union. When the vote came in, many people started analyzing the changes that would happen to the British, European, and worldwide economy.

    Only time will tell if this change will have a big impact on the U. S. economy. These are five ways that U.S. consumers might be affected:

    1. Better Exchange RateBrexit and US Consumers

    If you are planning a European vacation, right now is a great time to go! The British pound fell to a 31-year low, and the Euro has remained weak through this change. Since you can get more pounds or euros for your dollar, you will be able to stretch your vacation fund a little more.

    2. Falling Bond and CD Yields

    As the exchange rate changes, the yields of CD and bonds also change in the opposite direction. If investors are looking for a place to put their money, they might consider U.S. Treasuries, which could increase the price and decrease the yields.

    3. Reduced Immigrant Jobs

    Immigration is a hot issue in Britain and the other European countries. Brexit will likely decrease job availability for immigrants, making it harder for Americans to find work in Britain.

    4. Stock Price Decreases

    The Brexit vote caused waves in the stock market, resulting in a sharp fall. Since then, the U.S. market has recovered. But, it is hard to predict the volatility that could happen during the two-year negotiation period that will occur.

    5. Mortgage Rate Reductions

    Trends show that mortgage interest rates typically move in the same direction as the Treasuries. After the British vote, mortgage rates decreased. If you are thinking about buying a home or refinancing your mortgage, right now is a great time to make your move because of the low rates. These near historic low interest rates could lead to another small boom in the refinancing industry.

    Do you want to take advantage of the low interest rates? Contact United American Mortgage Corporation if you are ready to refinance your mortgage or buy a new home. These low interest rates can help to reduce your monthly payment and decrease the amount that you will pay in interest costs over the life of the loan. Call us for more information: (714) 420-1997