How 'Brexit' could affect Americans right now

How 'Brexit' Could Affect Americans Right Now

FINANCIAL DISTRICT, Manhattan – Plain and simple, "Brexit" means it's the United Kingdom's Independence Day and they've left the European Union, breaking apart from 27 other countries.

The dramatic exit is expected to spell bad news for the U.S. stock market – at least in the short-term when the opening bell rings at 9:30 a.m. on Wall Street.

As more than 17 million Brits celebrated their Brexit victory, global markets went into shock.

SEE ALSO: Europe in chaos as UK votes to leave EU

In Hong Kong, Tokyo and Sydney all dropped immediately upon opening.

The value of the British pound fell to levels not seen in three decades and the daily outlook for U.S. markets is looking bleak as well.

This isn't good news for all Brits – 16 million voted to stay and are devastated at the turn of events.

As if that news wasn't stunning enough, Prime Minister David Cameron announced he is stepping down as well, saying he's not the right "captain" to steer the ship.

Meanwhile Donald Trump, the Republican presidential frontrunner, told reporters in Scotland he thinks the Brexit news is "great."

What does this mean for Americans? A Washington Post analysis breaks down what the immediate future might look:

For those looking to buy homes:

In terms of mortgage rates, they're currently at the lowest level in three years at 3.5 percent. With this news, it's expected to go lower.

RELATED: Social reactions to Brexit

Reactions to 'Brexit'
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Reactions to 'Brexit'
Anti-establishment, populist, nationalist views leading to #Brexit parallels rise of Sanders & Trump in US & suggests Nov outcome uncertain
Of course Putin is happy about #Brexit. Undermining the integrity and success of the EU is a key project for him.
Conservative supporters of #Brexit completely under-estimate deeply disruptive effect of this vote and real harm to follow
"...and in the end, Britain, which had colonized the world, destroyed itself in fantasies that it was being colonized in turn" — historians.
Sterling gets trashed after #Brexit outcome but (cheeky) British wit shines through #EUref #FX $GBPUSD $EUR
The Brexit Diet: How to Lose Billions of Pounds in Just Minutes
That's enough fun for one evening. #Brexit
I'm so angry. A generation given everything: Free education, golden pensions, social mobility have voted to strip my generation's future.
Time to make a pot of tea and turn the television off for a while! 🙂
Stop the world im getting off LG x
No matter the outcome, #Brexit polls demonstrate how quickly half of any population can be convinced to vote against itself. Quite a lesson.

For those with retirement plans:

In short term, stock market investments could leave you exposed to a market in turmoil. Since 401K plans are long-term investments, most advisors will say it's best to not have a knee jerk reaction and make big changes to your portfolio.

For those with plans to travel to Europe/United Kingdom:

If you have travels plans to Britain or Europe this summer, the exchange rate will be in your favor. The Euro and pound are taking a beating with Brexit so your dollar will go a lot further.

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