Tuesday, July 12, 2016 / by Vanessa Saunders
Oddly, the American real estate market may actually stand to gain from all this Brexit fuss, at least in the short term. USA Today quoted Jim Costello, senior vice president of Real Capital Analytics, a data firm focused on commercial real estate investment who explained that sovereign wealth funds and ther large institutional funds that may have been interested in London commercial properties may now shift some of that capital to properties in the U.S.
Indeed, Real Estate Investment Trusts (REITs) in the U.S. have out performed the S&P 500 in the wake of the Brexit vote.
Moreover, investor uncertainty about the global economy, partly driven by the Brexit outcome, has driven down U.S. Treasury yields to record lows, and with it mortgage rates have fallen to record lows as well. The 30-year fixed rate mortgage averaged 3.41% for the week ending July 7, down from the 3.48% average a week earlier and 4.04% lower than the average for the same time last year, mortgage giant Freddie Mac reported Thursday.
For investors on ourside of the pond, the Brexit cloud may very well have a golden lining.