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, Investing.com *HM Treasury Forecasts as at October 2023

Leave a comment
Newest on top Oldest on top
Load more comments
Thank you for the comment! Your comment must be approved first
comment-avatar

"I would have no hesitation on recomending Gill and her team to manage a property or portfolio, in fact I think anyone would be mad to go anywhere else!"

- Barry

"It has always been prompt action on any issue raised and the feedback has been positive."

- Oketokun

"Both very Knowledgeable about the all properties I was inquiring about"

- Joanne

"Gill and Abbey were quick and efficient to get my place sorted"

- Charlene

"They are truly the best"

- Paulina

"We are very grateful for everything and wholeheartedly recommend Peter Anthony to anyone looking for outstanding property management services."

- Aman

"Abbey Bird at Peter Antony Estate agents has been and still is amazing"

- Sky

"Abbey was lovely, really helpful and informative, thank you!"

- Lisa