29/12/2023
When will mortgage rates come down?
Mortgage rates have been falling already, thanks to positive inflation data and the belief that interest rates have peaked after the Bank of England (BoE) held the base rate for the third time in December.
With some experts speculating that interest rates could be cut from March 2024, this is good news for homeowners.
Swap rates have also been declining, which is based on where the market thinks interest rates will be in the future. This is significant as swap rates are used to price fixed-rate mortgage deals.
Finally, as the housing market is now struggling due to high mortgage rates, lenders are incentivised to reduce their rates.
The average two-year fixed mortgage rate for someone with a 40% deposit is around 4.8%, with some experts speculating rates could drop to around 4% by the end of 2023.
