Britain’s recent exit from the European Union, or Brexit as it is commonly known, sent huge shock waves around the world, leaving many wondering: Why would one of the most powerful countries in the world suddenly pull out of the European Union? What were the Brits thinking?
The Brexit move brings up several immigration and trade issues in the UK, as well as Europe as a whole. And in today’s interconnected world, financial incidents that occur in one region, usually ripple throughout the rest of the world. These are the results of our economic globalization which begs the question for us mortgage professionals: what effect will Brexit have on the mortgage industry? Here are some of the effects of Brexit on the mortgage industry, and what we as insiders can do to adapt to this new climate.
Interest rates will remain low.
The Federal Reserve tends to be more cautious when facing a potentially volatile economic situation, and they have reacted accordingly with Brexit. The Fed has kept interest rates surprisingly low, meaning that activity in home buying will increase. Another result of these low rates will be an increase in refinancing. Combined with an extremely low unemployment rate and healthy job market, it looks like a positive economic forecast in the coming years. Of course no one quite knows how long this will last, but in the immediate future, consider convincing your clients to take advantage of the lower interest rates and to act now.
International interest in US property
Many see Brexit as a loud, clear, and somewhat exclusionary message: the UK is no longer interested in trade with other countries. Many foreign investors are thinking twice about buying property in the UK, instead preferring a more stable, welcoming environment, either to live or do business in. This should see a rise in the luxury real estate market, as well as in commercial and office spaces. This influx of foreign investors will drive prices up in high-end markets, so prepare your clients for this new competition and drive them toward other, less popular areas.
The long-term effects of Brexit on the global economy remain to be seen. Whatever these long term effects are, they will certainly be felt this side of the pond.
About Jungo Jungo offers pre-built Salesforce apps and accelerated implementation services for financial service verticals – including the mortgage, real estate, and wealth management industries. Jungo works with the World’s #1 Customer Success Platform and Partner Ecosystem to optimize its array of cloud based tools. With more than a decade of experience creating and integrating solutions for the financial services industries, Jungo is the preeminent expert in the field. Jungo’s innovative approach to Salesforce implementation helps businesses connect with customers and drive sales.Click here to schedule a live demonstration of The Mortgage App for Salesforce. Click here to schedule a live demo of The Marketing Platform.