Brexit’s impact is already fading

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.