Bank of England Governor, Andrew Bailey, has stated that there is “more resilient activity” in the economy and jobs market, meaning that inflation should begin to fall, with a sharp decline expected later this year. This confidence has led to reductions of up to 0.05% in average mortgage rates, as lenders begin to respond to the Bank of England’s decision.
Rightmove’s mortgage expert, Matt Smith, notes that lenders are becoming more confident to edge down their rates, and expects further reductions to be seen in the coming days. Other economic forecasters are predicting that interest rates will fall below 3% next year.
This data is encouraging for those seeking to enter the property market, with reduced borrowing costs making homeownership more affordable. However, it is important to note that the path to lower costs may not be entirely smooth, as inflation rose to 10.4% last week. Nonetheless, the current trend of falling mortgage rates is a positive sign for the property market.