Surge in post-Brexit refinance requests

Mortgage rates have dropped to historical lows in the wake of Britain's decision to exit the European Union, and have sparked a surge of mortgage applications.

Refinance mortgage requests on Zillow jumped 132 percent, compared to pre-vote activity the previous week. Purchase mortgage requests also increased, but just by 24 percenti. Even after the immediate panic of the vote receded and the flight to bonds' safety has eased, home loan rates continue to drop and mortgage request activity has maintained its momentum: this week, refinance requests were up by 107.6 percent and purchase requests by 13.3 percent compared to two weeks ago.

According to mortgage rates on Zillow, the average 30-year fixed conforming mortgage rate has fallen 19 basis points since the Brexit vote, to 3.27 percentii, and today is holding near the lowest rates recorded in late 2012.

"Compared to everything else going on in the world, U.S. mortgage-backed securities now seem like a relatively safe bet for global investors, and this flight to safety has created savings opportunities for U.S. homeowners and those who want to buy," said Erin Lantz, VP of Mortgages for Zillow Group. "The drop in rates following the vote sparked an influx of refinance activity, and may also be encouraging home shoppers to move quickly and lock in a rate. That said, while mortgage rates are a key factor when buying a home, it's important to remember that affordability is rarely determined solely on the rate you can get. The harsh reality is that if you couldn't afford a house a few weeks ago, you likely still can't."