The impact of Brexit on the housing market has been short-lived and minimal. A widening in spreads meant that mortgage rates did not fall as far as Treasury yields, which have in any case since rebounded. Moreover, what drop in mortgage rates there was failed to boost mortgage applications for home purchase. (See Chart.) Sales continue to be restrained by a lack of inventory, which is also leading to renewed upward pressure on house prices.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services