Brexit, Britain’s exit from the European Union, may raise home values in the United States. This is a result of the increasingly interconnected global economy.

That’s good news for property owners and investors looking to buy and sell now and in the near future.

Britain’s historic move immediately drove yields of U.S. government debt down. This put pressure on mortgage rates right away, though only minimally at first. The downward push is forecasted to continue, because mortgage rates typically adjust downward on a delay, much like gas prices.

Lower mortgage rates allow buyers to invest in more expensive homes without increasing their income.

An Increased Demand for U.S. Real Estate

Some analysts, according to reports, expect Brexit to increase demand for American real estate, especially in major cities such as Los Angeles and New York. The American apartment market has increasingly drawn international investors for its profitability.

Also, many investors with money in London’s real estate market may look to move their dollars to the U.S. This may be true with the uncertainty around rules of foreign investment in the post-Brexit marketplace. U.S. foreign investment laws have eased the tax burden for investors, making the market even more appealing.

Different Meaning for Buyers and Sellers

Lowered mortgage rates and increased foreign investment are likely to increase residential and commercial real estate prices.

For buyers, the lower rates mean the time is ripe to buy. For sellers, it means prices may be adjusting upward as more buyers enter the market and increase demand in a market that’s already seeing housing shortages.

More buyers with less houses to choose from lead to higher prices. Lower mortgage rates will allow those properties to sell at the higher prices without reducing the number of qualified buyers in the buyer pool.

The impact is expected to affect highly qualified buyers most, giving those with the highest credit scores the lowest mortgage rates. Sellers in affordable markets are also expected to get a hefty boost from the Brexit aftermath as lower rates make home ownership more attractive to renters.

The Bottom Line

All of this is happening as home sales in 2016 have been the most robust in a decade. So, the impact of BREXIT – lowered rates and increased interest from foreign investors – will likely be a boon in the short-term to an already healthy market.

And because of the lower monthly payment from reduced rates, now buyers can afford more than they could at the beginning of 2016. The increase in buying power so far is said to be offsetting the higher prices.

All of these are issues to watch over the next few months as the impact of BREXIT plays out.