what does brexit mean for the average us citizenThe historic exit vote by the citizens of Great Britain from the European Union is a demonstration of social revolutionary change that will have a global economic impact.

Calling for social and cultural preservation changes, closing open borders, revised free trade agreements, and the tightening of lax immigration laws, British voters may have opened the proverbial Pandora’s box of an economic conundrum. The selloff in the US Stock market indicates the uncertainty and fear of the unknown. The recent flight to safety of buying the US Treasury debt has pushed the yields to their lowest levels Since July of 2012. (Our government auctions the Treasuries to finance our national debt).

The 10 yr. Treasury at 1.46% has a direct bearing on mortgage rates.

This has created a frenzy in the mortgage refinance market as government insured 30 year fixed mortgage rates fall below 3.00%. This writer predicts even lower mortgage rates as the turmoil seeks to correct itself in the coming months.

If life puts up a brick wall, buy bricks. Now is the time to refinance that home mortgage. If you have a VA loan, ask for a streamline refinance (IRRRL) with no appraisal or credit report required. VA limits the Lenders fees so this is a great option to lower your mortgage payment or simply cut the remaining term. If you do not own a home, stop paying rent and buy a house. Home values are just now recovering from the price hit in 2008-9 and this present s great opportunity to own the American Dream.

Don’t panic. If you are a senior citizen, the worse thing you can do is panic sell your portfolio in a down market. Consider a reverse mortgage for ready tax free cash and leave that investment portfolio alone. While the Brexit debacle will have an impact on the stock and bond market, especially with stocks of companies that operate in Great Britain, it will recover over time. But be prepared for a 2 year exercise in patience.