How Brexit Has Helped U.S. Housing

Published Tuesday, April 2, 2019
by Milton Ezrati Contributor

The U.S. housing market has picked up of late. Sales of new residential units, after falling through most of 2018, have risen smartly during the past couple of months. Residential construction, as measured by starts of new homes, has also rebounded. The reason for this sudden turn lies far from our shores. Brexit as well as other economic troubles in Europe and Japan have kept interest rates in these regions so low that a flood of foreign money as arrived in the United States, driving down longer-term yields here  including mortgage rates. American homebuyers have rushed to take advantage. This, more than anything else, explains the recent real estate turnaround. It is welcome and may hold. But the improvement will not likely build on itself as it might once have done.