According to an article by Chris Matthews in Fortune Magazine, the U.K.'s decision to leave the European Union cold mean higher home prices in the U.S.
It may seem strange that a political decision in the U.K. could have any impact on American housing prices, but such is the nature of an increasingly interconnected global economy.
First, one of the immediate effects was to send yields of the 10-year Treasury falling, which is going to put downward pressure on mortgage rates, though slowly and not by much yet. Mortgage rates typically move with delay, especially in the way down. But eventually, lower mortgage rates means higher home prices because low rates enable homebuyers to afford a more expensive home with the same income.
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