Watch CBS News

UK's 'Brexit' Decision Could Have Worldwide Impact

Britain's surprise decision to leave the European Union sent a shockwave through financial markets around the globe.

The Dow Jones Industrial average ended the day down more than 600 points and the Nasdaq suffered its biggest loss since 2011, down 202 points.
Indexes in Europe and Asia took even larger losses.

"It's not the end of the world. We're not down the way the rest of the world is," said Stephen Guilfoyle, NYSE Deep Value Execution Services

That volatility in the stock market could have a positive impact for home buyers according to Steve Rice of Marketplace Home Mortgage

"We're fully expecting a lot of inquiries and ramping up for questions next week," said Steve Rice of Markplace Home Mortgage.

Interest rates are currently around 3.5 percent for 30 year fixed rate mortgage. Steve thinks it could fall even more in the days ahead.

"I don't think we're going to see a 1 percent interest drop but 1/8 to 1/4 percent wouldn't surprise any of us," Rice said. "Every quarter percent could translate to 20-30 dollars in your monthly morgage payment."

While a drop in US interest rates could take days, in the UK, the pound already fell to its lowest point in 30 years. Travelers with plans to visit Great Britain this summer will see their dollar will go further than it has in decades.

"If you're going this summer, you've kind of hit the lottery because the pound isn't looking to recover much this summer," said Andy Aoki, a political science professor at Augsburg College.

There is uncertainty for American companies with branches in the U. The EU agreement allowed those companies into European countries for trade and business without trade barriers but that may no longer be the case.

"Britain is their gateway to Europe and now that gateway is closing," Aoki said.

Great Britain's vote forced one of the world's most powerful leaders out of office. British Prime Minister David Cameron had staked his reputation on keeping Britain in the EU Now, he plans to leave by October.

Those who voted for the so-called Brexit believe their leaders will now have more control over immigration, trade and other economic issues.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.