Mortgage Rate Rises

[413x]

Inflation sticky, wage growth high, services inflation high.

'Markets' were pricing in 4 cuts this year, now its down to 1. Of course 'markets' dont know anything and its all a guess but hefty cuts look unlikely anytime soon.

Pound Sterling in Inflation Boost vs. Euro & Dollar as Rate Cut Hopes Fade

www.poundsterlinglive.com

Yeah I certainly got this one wrong.
I got the extent of the rises right. And put my money on it and did well.

But I certainly expected rate cuts nowish.. And put my money on it.

1 out of 2.. To the casino it is!


2 cuts is probably a good outcome now.

 

[jaybee]

I still think we might see low 3% mortgage rates by summer 2025.

 

[delta0]

I think we will see a cut this year but markets are currently tempering the amount and how aggressive they will be. It looks like it will be a slower process. While wage inflation is still high it is going to drag on.

 

[dazzlaa]

I still think we might see low 3% mortgage rates by summer 2025.

Hope so! My deal runs out around that time.

 

[Sythe79]

I still think we might see low 3% mortgage rates by summer 2025.

The base rate might at a push hit low 3%, if you're optimistic, but even then I doubt general mortgage rates will. It's not normal for mortgage rates to be so low compared to base rate as they are now.

 

[Chris344]

The base rate might at a push hit low 3%, if you're optimistic, but even then I doubt general mortgage rates will. It's not normal for mortgage rates to be so low compared to base rate as they are now.

It is so difficult to try and time, hence mt question last week re fix vs tracker.

 

[jaybee]

Rates rose again this week a little bit.

 

[Sythe79]

looks like we fixed at the start of the year in a mini dip, at least, by as much luck as judgement... and the luxury of it not really mattering that much.


The real problem at the moment is just how unstable the market seems to be, at least if everyone was aware of exactly how screwed they were, they could plan accordingly

 

[Chris344]

Looks like more major banks have upped their fixed rates today.

 

[glenimp617]

Looks like more major banks have upped their fixed rates today.

Just goes to show nobody knows what's going on

 

[Chris344]

Just goes to show nobody knows what's going on

Agreed.

 

[mattyfez]

Thing is interest rates have been historically low for a long time but that's not really 'normal' but people expect them to go so low again.

I think what we have now will be pretty stagnant for a good 4 or 5 years.
I'm sure there will be plus 0.25 percent here and minus 0.25 percent there...

 

[delta0]

Renewing tomorrow for 2 years at 4.83% (no fees).

 

[slinxy]

Thing is interest rates have been historically low for a long time but that's not really 'normal' but people expect them to go so low again.

I think what we have now will be pretty stagnant for a good 4 or 5 years.
I'm sure there will be plus 0.25 percent here and minus 0.25 percent there...

Agreed... the all time low percentages isn't the norm and shouldn't be the norm. I watched a video today where the person who used to work for citibank as an investor was in a meeting discussing the banking crisis at the time.

They was showed the stats that the middle class was getting poorer/into debt and the government was getting more debt. The only way for the country to survive was to lower the interest rates to allow the government to borrow more money at cheaper interest. I've never thought about it in that way before. He made his investments based on the calculation that it will be all time low rates for an extended period and made billions for the bank and pockected millions in bonuses.

I'll be well chuff if I can renew my mortage in 4 years time for around 3.5%, this is what most of the sites are predicting it will be. anything more that 4.5% and I'll be trying to pay off the rest of my mortage off asap but I should only have around 50k left by then.

 

[IvanDobskey]

Just made my alloted 10% overpayment for the year, down to £17k now.

Edging ever closer to being mortgage free

 

[413x]

I'm not smart enough to understand what the impact of these 5pc rates would be long term.

More and more toxic loans I guess.
Business and personal.

Obviously house prices will stagnate at best.
But many businesses require these low rates to survive. I guess you could argue these as bad businesses.

So much is loaned now all over the place.
Many people's cars, mortgages, credit cards and the cost of everything else.

I suppose businesses too indebted will fail, others will stagnate and people will cut spending even more.

Still plenty of people on very cheap (relatively) mortgages.

 

[BUDFORCE]

Yup mortgage lender I work for has been putting up rates over the last week or so, and a lot of competitors are as well.

We've actually been really bloody busy for about 3-4 weeks so hopefully it slows down a bit.

 

[Nasher]

All of this crap is a chain reaction caused by one idiot and very brief PM and then one idiot in Russia, so annoying.

But if you think it's bad here you should see the rates in Russia. It's about 17% and rising.

 

[Simon]

All of this crap is a chain reaction caused by one idiot in Russia, so annoying.

But if you think it's bad here you should see the rates in Russia. It's about 17% and rising.

It’s exactly 16%.

Not noticed turkey ?

 

[Richie]

We've actually been really bloody busy for about 3-4 weeks so hopefully it slows down a bit.

Can't have work eating into your gaming time during work hours now...