This week, the world watches for Thursday’s Brexit vote. Analysts anticipate that the vote leaves a tremendous impact on mortgage rates for years to come. Because the United Kingdom maintains its status as one of the global superpowers, this vote may lead other European Union countries to follow suit.
Brexit Vote on Thursday
Overall, it is very difficult to predict the outcome of Thursday’s Brexit vote. If the United Kingdom leaves the European Union, this may start a trend. Analysts pontificate whether other European Union member countries would conduct their own “Brexit-esque” vote.
The Brexit vote fosters economic uncertainty. In the event that the United Kingdom votes to leave the European Union, economic analysts anticipate that U.S. However, if the United Kingdom chooses to stay in the European Union, analysts expect a negative impact for mortgage-backed securities.
Investor Reaction to Brexit Vote on Thursday
Investors react immediately to the latest polling numbers for Thursday’s Brexit Vote. As each new poll shifts the odds, investor opinion fluctuates.
Generally, this increases daily volatility. Investors factor the expected outcome into asset prices. For example, the latest poll showed greater support to remain in the European Union. Thus, mortgage rates moved higher today.
Looking Ahead to the Vote
Currently, the world faces economic uncertainty while waiting on the European Union. Once the vote passes, analysts expect swift market action.
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