The housing market will continue to ‘stabilize’ – and mortgage rates will continue to fall
We are still getting feedback from the interest rate decision and it seems experts are feeling positive about the impact on the housing market.
Clare Batchelor, director of mortgage operations at Wesleyan Financial Services, said the decision would allow the market to “continue to stabilize”.
However, she said it was still “early days” and a lot of inquiries from buyers still needed to lead to an increase in mortgage applications and approvals.
She added: “Certainly, there are mortgage deals that are much better than last summer, with interest rates being cut almost daily by different lenders.”
“Looking ahead to next year, if inflation continues its broad downward trend, then hopefully by the next half of the year, we will know whether interest rates will still be lower or not.”
Rightmove mortgage expert Matt Smith said the housing market is stronger than last year and that has been proven as a surprise rise in inflation a few weeks ago failed to derail the downward trend in interest rates. mortgage rate.
There’s even a chance interest rates will fall further, he said.
He added: “The big picture remains the same – base rates are unlikely to rise further and mortgage rates are likely to fall further before resolution.”
“For anyone who is thinking about moving but has not yet taken action, the slight increase in average interest rates in some of the lower loan value brackets this week is a reminder that average interest rates will aren’t falling forever and mortgage rates appear to be stabilizing. after a significant decrease in early January.”