Blog Post

Bank rate hold benefits swap rates and mortgage rates

TomS - Head Tom Simper Nov 6, 2023, 12:00 PM

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, *HM Treasury Forecasts as at October 2023

Load more comments
Thank you for the comment! Your comment must be approved first

"Sean is a really pleasant courteous gentleman to deal with too"

- John

"Peter Anthony's Liverpool branch deserves the highest rating"

- Daniel

"Gabriel was very friendly"

- Ash

"Wouldn't hesitate in recommending Peter Anthony for any of my requirements when it comes to a home"

- Craig

"Gill & team demonstrated the highest level of professionalism"

- Syed

"It was super easy to schedule a viewing with Abbey"

- Pamela

"Great service with due diligence. Clean house."

- Adeyemi Oshodi

"Honest. Trustworthy, efficient"

- Joe