Low Mortgage Rates Will Not Entice Buyers, CNBC Contributor Says
NEW YORK (TheStreet) -- Even though mortgage rates are headed to record lows, housing sales probably will not rise by much, CNBC's Joshua Brown said on "Fast Money: Halftime Report" Friday.
The average rate of the popular 30-year fixed mortgage dropped nearly 0.25% in 10 days due to the U.K.'s decision to leave the European Union last week, which initially put heightened pressure on markets across the world, CNBC's Diana Olick reported.
"Well I'm calling it the Brexit benefit to U.S. homeowners and potential buyers," Olick said, adding that "more importantly" the rate, 0.75% lower than it was a year earlier, held steady even as bond rates rose slightly higher.
"We're not quite at record lows yet on the 30-year fix," she continued. To hit a record, the rates need to drop another 0.125%, which would take another major event.
However, Brown does not foresee Americans running out to buy homes just because the 30-year fixed mortgage rate dropped.
"If you weren't buying a house now, a 0.25% lower mortgage is not what drives you," Brown argued.
However, the "housing picture" continues to perform well, he commented.
The iShares Dow Jones U.S. Home Construction (ITB) ETF is higher by 0.4% to $27.76 this afternoon.