LendingTree Says Brexit Drags Mortgage Rates To Freefall

Lendingtree Inc TREE disclosed a fresh report that found mortgage rates offered by lenders on its network to have fallen 14 basis points after Brexit vote to leave the European Union.

Lending tree said in response, it has seen a significant increase in refinance requests due to the dramatic market reaction to the UK's exit from the EU as it continued to drive down mortgage rates. The company indicated that requests for purchase of mortgage loans have also increased after the news of Brexit.

The company's founder and CEO, Doug Lebda, commented, "This historic event has created an opportunity for US borrowers to lock in some of the lowest interest rates we've seen since December 2012. We're seeing 30-year fixed-rates as low as 3.21% APR, which means there is a massive window of opportunity for borrowers to save."

Related Link: Here's How The Brexit Could Impact The U.S. Housing Market

He continued, "On a $275,000 loan, a 55 basis point decline in interest rate translates to roughly $31,500 in potential savings on payments toward interest."

Lendtree said since January, average offered interest rates dipped to an average 3.73 percent from 4.28 percent after the Brexit news. Last Thursday, i.e. June 23, average offered interest rates for a 30 year fixed-rate mortgage were 3.84 percent.

On Wednesday, shares of the company traded 3.7 percent up.