Mortgage Rate Cuts & House Price Inflation Decline
Despite soaring interest rates UK lenders continue to slash mortgage rates. Furthermore, market indicators show house price rises are not only slowing but poised to drop into negative territory.
Zoopla, reports inflation slowing to 7.8%. The property site predicts a further dip into Q1 2023, with a prediction that mortgage rates will settle at 4.5%-5% by mid-2023.
Bloomberg report, based on figures provided by data provider money facts, the cost of the average five-year fix, dropping to below 6%.
Coventry, TSB lower residential fixed rates, Coventry for Intermediaries has reduced all owner-occupier fixed rates by up to 45 basis points, including two-, three-, and five-year options, reports Mortgage Introducer.
Market conditions are improving, allowing us to pass on price reductions across a number of products. – Jonathan Stinton, Coventry Building Society.
Home Legal Direct Insights
Mortgage rate cuts coupled with slowing house price inflation spark the beginning of a more positive outlook for the housing market.
More accessible housing prices, lower requirements, and acceptable rates prompt the return of potential buyers to the housing market. This small shift in demand could be the catalyst that sees the property market begin to regain momentum going into 2023.