What is happening with mortgage rates and when will they come down?
manchestereveningnews.co.ukThe mortgage market was sent into a frenzy last month after the Bank of England's decision to raise interest rates. Following a meeting in June, the Bank hiked the base rate up to 5 percent - which is the highest rate since 2008.
The decision to make the huge 0.5 percent increase, which marks the 13 consecutive time interest rates have climbed, was made in an attempt to bring inflation down towards the 2 percent target set by the Government.
This comes as the Office for National Statistics (ONS) revealed that inflation fell to 7.9 percent in June, down from 8.7 percent in May - which is its lowest rate since March 2022.
But despite inflation seemingly falling, homeowners are still being put under increased pressure as mortgage rates have continued to rise towards 6% in line with interest rates, impacting both buyers and sellers in the property market. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. With the Bank of England due to have its next Monetary Policy Committee (MPC) meeting on Thursday, August 3, financial expert are predicting that interest rates will rise again, but that the Bank could opt for a smaller increase of 0.25 percent.
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