Bank rate hold benefits swap rates and mortgage rates
6th November 2023
The Bank of England held the bank rate at 5.25% in their November 2023 meeting. Interest rates, through mortgage affordability, are a key determinant for the residential market outlook.
Consensus forecasts compiled by HM Treasury suggest that interest rates are at their peak. Year end forecast for the bank rate for 2023 is 5.3%, then forecast to fall to 4.7% by year end 2024.*
Swap rates give us a good indication of changes in mortgage costs – reflecting the cost of borrowing for lenders. 5 year swap rates reacted well to the Bank of England decision, now at their lowest level since May.
The market is still adjusting to higher interest rates and mortgage approvals remain low, but with interest rates at or close to their peak improvement in sentiment should be evident from Spring 2024.
Source: #Dataloft, Investing.com *HM Treasury Forecasts as at October 2023
Employee of the Month – April 2024
9th April 2024
Our Employee of the Month for April 2024 is one of our Maintenance Administrators – Maddie Breed! Maddie has been…
Sales Blossom in Spring
9th April 2024
In the past five years (excluding 2020 due to Covid), springtime bloomed with 27% of home sales, the highest proportion…
Spring budget 2024
7th March 2024
The Spring Budget this year felt very much like a keep calm and carry on budget for the housing market….