Mortgage Rates on the Move: Halifax Cuts Prices Despite Inflation Concerns
The mortgage market is abuzz with activity, as Halifax announces a reduction in mortgage rates despite higher-than-expected inflation figures. This move comes on the heels of similar price cuts from rival lenders HSBC, Santander, and Barclays.
The new mortgage rates will take effect on Friday, May 24, and are a welcome respite for home buyers who have been waiting for prices to come down. However, the timing of this move is interesting, given the latest inflation reading from the Office for National Statistics (ONS).
The 2.3% headline inflation rate, coupled with higher-than-expected core inflation and services inflation measures, has led to a shift in market expectations. City traders are now betting against a summer interest rate cut, with the next cut expected to come in the autumn.
So, what does this mean for mortgage holders and home buyers? According to Aaron Strutt, product and communications director at Trinity Financial, “mortgage rates are probably too high for many buyers, so they are simply waiting for fixes to come back down.” This wait-and-see approach has led to a quieter property market than expected.
Mortgage rates are on the move, but will they continue to fall?
The lack of demand from home buyers could prevent mortgage prices from rising again, but it’s a delicate balance. As Strutt notes, “people are holding off buying” in anticipation of lower rates. This wait-and-see approach has led to a quieter property market than expected.
We expect more big banks to announce pricing improvements this week. Will this trend continue, or will inflation concerns put the brakes on mortgage rate cuts? Only time will tell.
Inflation concerns are still on the radar, but will they impact mortgage rates?
As the mortgage market continues to evolve, one thing is clear: home buyers are waiting for the right moment to strike. Will this latest move from Halifax be the catalyst for a busier property market? We’ll be watching closely.
The property market is quieter than expected, but will it pick up soon?
