Mortgage Rate Rises

It seems the "hype" has sort of subsided around this. Does anyone think the winds have changed slightly since a couple of weeks ago? Have the events in Westminster affected things positively or negatively at this point?
 
Zefan said:
It seems the "hype" has sort of subsided around this. Does anyone think the winds have changed slightly since a couple of weeks ago? Have the events in Westminster affected things positively or negatively at this point?
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The rises are baked in. Truss accelerated them. Expect more base rate rises. What the mortgage market prices in (the spread) above the base rate is likely going to move up only. It may start to lower 2028 or so depending on circumstances.

People will just get used to it!
 
CapitalOne said:
The rises are baked in. Truss accelerated them. Expect more base rate rises. What the mortgage market prices in (the spread) above the base rate is likely going to move up only. It may start to lower 2028 or so depending on circumstances.

People will just get used to it!
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This.

Rates will go up slowly, maybe not much at all I suspect. But I don't see any reduction in next 12 months.

Hopefully this is the end of the hikes. This must be the very edge of affordability.
 
413x said:
This.

Rates will go up slowly, maybe not much at all I suspect. But I don't see any reduction in next 12 months.

Hopefully this is the end of the hikes. This must be the very edge of affordability.
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I expect we will follow the US strategy which is to go stronger with the interest rate rises earlier. They will go up higher than they are now but I expect they will start falling sometime next year.
 
throwaway4372 said:
rates moving again this week, so it'll wake up
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Will any boe rate move actually make any difference in the inflated current rates though? It seems like these are already "priced in" (starting to get sick of the term) from what I gather? If this is the case would we say we're looking at a potential climb down of rates if the increase is less than expected? We already had some rate drops in this week following the end (for now) of Westminster turmoil.
 
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Consumer spending feels quite high still. Premium goods in the supermarket seem to come and go on the shelves. People at work are spending on holidays 45yrs+ ages, while the younger ones living at their parents buying the usual expensive consumer goods. Whilst that's useless examples, restraunts and the like appear very busy still. For Sale and Sold signs still common place here too.

Feels all like a right mess.
 
Logically rates should be rising significantly given that inflation is very high and Sterling is significantly devalued. I mean 15 years ago if you'd have said we have 10% inflation and it's 1.1 dollars to the pound, yet we have interest rates at a miniscule rate of 2.25%, people would have laughed you out of the room quicker than Kwasi holding a briefcase.
 
I don't think they need to rise much.

We are about to hit simultaneously :
-effects of the higher mortgage repayments
-winter fuel prices
-ever increasing food prices
-likely austerity

Doesn't actually need much of a base rate rise at the moment IMO.


Significant job losses must be just around the corner
 
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HangTime said:
Logically rates should be rising significantly given that inflation is very high and Sterling is significantly devalued. I mean 15 years ago if you'd have said we have 10% inflation and it's 1.1 dollars to the pound, yet we have interest rates at a miniscule rate of 2.25%, people would have laughed you out of the room quicker than Kwasi holding a briefcase.
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But isn't the issue that increasing rates will have little affect on the root cause of inflation at the moment i.e putins special obliteration
 
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