Alex Mackay comments on this months Interest rates decision by the BOE and the property market.
Market update following Bank of England's decision to hold interest rates this month.
Well, I think that was expected! The Bank of England having held interest rates yesterday for the first time for many months is a good sign for us all. Plus the rate of inflation going down again, now at 6.7%, even though fuel prices were up in August
I’m not saying the Bank of England won’t raise interest rates again as I do expect them to. However, the mortgage market is very competitive with dozens of lenders competing for a smaller market share. Therefore they will be encouraged to review their own interest rate policy following this Bank of England announcement and I quite expect mortgage rates to fall, not a lot, but fall all the same.
We will still have a tough market for the rest of the year and owners must be realistic on their price if they wish to sell. Things bode well for 2024 with better rates in the market and interest rates, if not stable, likely to fall.